Selling an enterprise often involves sharing sensitive data and documents with many buyers. If you’re looking to sell your business or need to share sensitive information in a safe manner, a virtual room is the solution. A data room (also called a virtual dataroom to facilitate due diligence) offers the distribution and control necessary to complete your transaction.

Investor data requests are made throughout the deal flow process however, they are usually made in two phases. Stage 1: data required to create a term Sheet (e.g. market fit for the product, financial models Cap Table).

Stage 2: detailed due diligence request (e.g. security-related documents, agreements on material, and more).

When creating a dataroom, keep in mind that investors need to navigate through data and documents efficiently and in a straightforward way. To achieve this, consider making a comprehensive list with required documents and a logical structure that makes it easier for investors to find what they are looking for. A good https://dataroomfashion.com/virtual-data-room-vs-physical-data-rooms/ way to do this is to make use of metadata, folders and a consistent document naming convention.

A second recommendation is to avoid sharing unstructured and unorthodox analyses in the dataroom. This can be confusing to investors and could signal a lack of understanding of the business. Be sure to include only the information that are relevant to your company and remove any documents that are no longer relevant. This will help you save time and ensure that all parties have the most current and accurate data.