When choosing a virtual room to conduct due diligence, it is essential to find a provider with transparent pricing and no hidden fees. Typically, virtual data rooms charge one fixed monthly fee for unlimited storage and users. Most providers offer a free trial for new customers so they can conduct some hands-on research. Think about the subscription model that is most suitable for your company, based on the length of the project. For instance long-term contracts usually come with discounts.

Once you have found a suitable provider then upload all the relevant documents and set up access permissions. Use the template for folder structure provided by the provider to ensure that all important information is properly organized and accessible. Think about using advanced encryption and watermarks to ensure the highest level of security. A built-in confidentiality due diligence agreement will ensure that investors and visitors adhere to specific rules to protect private information.

Organising the files within the data room in a logical and efficient way is crucial for effective collaboration during due diligence. The conventions for file names classification, categorizing, order and indexing require careful consideration to avoid chaos when reviewing and sending multiple files. The index should also be in line with the structure of your due diligence checklist to allow easy searching and finding files. A section for answers to questions is a great way to help with communication and clarifying issues.