Data Room Due Diligence – Organizing Files
The correct structure of a folder is an essential element of a successful data room due diligence. There are many ways to arrange files according to specific criteria, such as department, stage of the project or level of security. The most widely used method is to separate files in main folders that correspond to particular types of information and then create subfolders to improve user-friendliness of the system.
It is recommended to select a provider who provides a function for indexing files. This function assigns a unique identifier to each document, and then renumbers it automatically when the structure of the folder changes. This can save you lots of time and effort, especially when there are multiple interested parties looking at the same set of documents.
Some VDR providers even provide the ability to put watermarks to files, which makes it difficult for recipients to make copies of sensitive documents and will help to protect intellectual property during due diligence. Often, these VDRs also include functionality that allows users to provide the terms of agreement that recipients need to accept prior to viewing sensitive content. This will allow project participants to meet the requirements of regulatory agencies concerning confidential data in specific industries. It is essential to select an organization that is aware of the needs of customers and offers features that meet them such as access control, audit trails and granular permission management for users.