When a company has to share sensitive information with other parties, a data room solution allows users to keep that information safe and only reveal it to those who require to see it. This is usually used in mergers and purchases (M&A) however, it can also be used to raise funds, IPOs or legal proceedings. If you’re planning to use a data room, you need to understand how to use one in order to make the most of your investment.
Find out what kind of files and documents you’ll need. Then, arrange and upload those documents to the data room. Create an organized folder structure that includes clear categories, like financial documents and legal documents. Add subfolders to each category to further categorize the documents. This will enable users to find the right document quickly, and will avoid confusion.
Take note of the kinds of users will be using the data room. Consider the roles of the users and the degree of access they’ll require. Administrators, for instance require full access, whereas investors may need only access to the view.
Check that the file names and titles are clear and consistent to help users to navigate the room. Consider adding a background or summary to each document. This will allow users to better understand and contextualize the document. Create a procedure to eliminate outdated files from the room to guard against security risks.
