Data Room Due Diligence – Organizing Files
A proper structure for your folders will allow you to conduct diligence in a data room. There are several approaches to organizing files according to particular criteria such as the stage of the project, department or level of confidentiality. The most well-known method is to separate the files into main folders which correspond to specific types of information, and then create subfolders to make the system more user-friendly.
In order to ensure that everyone will be able to find the documents they require, without lengthy searches it is a good idea to choose a provider that offers a file indexing feature, which assigns a unique number to each document, and renumbers it automatically when you reorganize its position in the structure of the folder. This will help save time and effort for you, especially if there are multiple people reviewing the same documents.
Certain VDR providers have the capability to add watermarks on files to prevent copying sensitive documents. This will protect intellectual property and help with due diligence. Often, these VDRs also have features that allow users the ability to present conditions of agreement to the recipients to accept prior to viewing sensitive content. This will make it easier for the project participants to comply with regulatory regulations regarding confidential information in certain sectors. It is crucial to select an organization that understands these requirements and offers solutions to address them such as access control and audit trails.