Data Room Request List Importance

An M&A transaction is a lengthy process that requires the exchange of a large number of documents between potential customers, given the potential threat of data breaches and other difficulties. Thus, due to the complexity of this process, virtual data rooms have become almost a must-have tool in this endeavor. With VDRs, you can upload, organize and share documents at any level of confidentiality, and conduct due diligence. Use the data room request list to provide a clear check structure and speed up the M&A process.

Due diligence checklist for virtual data room

Below we’ve provided you with a due diligence checklist to guide you as you prepare for due diligence. With the checklist, you’ll be sure you don’t miss anything. You can create separate rooms for a separate group of documents, which you can only give access to certain individuals concerned.

Business information

  • List of shareholders and their agreements, founding documents, organizational structure
  • Products and services, the list of which includes guarantees, customer information, trade licenses, permits, etc.
  • Tangible assets, real estate, physical assets
  • Intellectual property, copyrights, domains, patents, trade secrets
  • Information technology, company IT programs, user programs, licenses
  • Publicity, which includes company articles and press releases

Legal information

  • Agreements (vendors, distributors, loans, etc.)
  • Antitrust and regulatory issues
  • List of current lawsuits with descriptions
  • Environmental issues (commitments, environmental audits, certificates of compliance, permits, etc. Д.)

Financial information

  • The company’s revenue streams and debts
  • Audited financial statements (balance sheets, audit reports, correspondence, etc.)
  • Capital budgets, forecast, and strategic plans
  • Analytical reports
  • Insurance coverage
  • Tax information

Human resources

  • Company’s personnel policy
  • Employees, including engaged professionals (resumes, positions, pay history, contracts, compensation claims, etc. Д.)
  • Company benefit terms and conditions
  • Employee surveys

With the recommendations described above, you can much more efficiently design and structure the data needed for due diligence.

Why use data room index to organize your files?

The indexing feature is a very useful solution that gives you many benefits, such as:

  • Simplified search – thanks to the data room index, you can find the file you need within seconds. The index is similar to the genres of books in the library, knowing only the index you will find the file you need among thousands of other documents, which speeds up the process of due diligence by several times
  • Automation -Create an index that suits the needs of your project. With built-in artificial intelligence, indexing is done automatically while documents are being uploaded. It won’t take up any valuable time or effort. Instead of dealing with administrative and organizational issues, you can focus your attention on the M&A itself
  • Enhanced communication – Bidders often initiate many issues during a transaction, which are mostly about their inability to find the right document for them. VDR provides your potential clients with a convenient and intuitive data room index that will enhance your communication with other bidders
  • Speed – undoubtedly, using advanced technological solutions during the transfer and exchange of documents is much faster and more efficient than if it was done with paper documents. Indexing helps you create a clear and transparent structure of your uploaded data, which in turn speeds up the M&A process by improving your interaction with customers and providing enhanced search capabilities