If you’re considering the use of the use of a data room to aid in due diligence or sales processes, or any other motive, it’s crucial to think about how the tool will be used by users. The structure of the data room must be well-organized and clear so that potential buyers are able to quickly find the information they’re looking for. This will help you answer any questions in a timely fashion and speed up the deal process.

The first step to creating a coherent file structure is to create subfolders and folders with names that reflect the content of each folder. When uploading files it’s best to follow consistent formatting and naming standards. Also, only save relevant documents in each folder. If you can, put related documents into subfolders. This will assist potential buyers find the information they require and ensure all information related to a particular topic is accessible in one place.

Before granting access to files in your data room, you might be required to ask users to sign a non-disclosure agreement (NDA). This is a normal practice when dealing sensitive information. It reduces the risk of intellectual property theft. Most virtual data room providers offer standard NDA templates that can be customized to meet the needs of your business. You can set up granular permissions in order to limit access to certain files to specific users. You can easily revoke the permissions granted to a user should you change your decision. This is the case even if the user has previously downloaded or viewed files from your data room.

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