The process of selling businesses often involves sharing sensitive data and documents with many buyers. Virtual data rooms are the ideal solution for anyone planning to sell their business or who wants to securely share sensitive information. A data room, also referred to as due diligence virtual dataroom offers the secure distribution and control you need for your transaction.

The demand for data from investors is present throughout the entire process of deal flow but tend to occur in two phases one stage: Stage 1 data required to create the term sheet (e.g. product-market fit, financial models and cap table).

Stage 2 of the detailed due diligence request (e.g. security-related documents, agreements with material and more).

When you are creating a data space be aware that investors want efficient and easy navigation through the documents and data. To achieve this, you should consider providing a comprehensive list necessary documents and a sensible structure to make it easier for investors to find what they’re looking for. This can be achieved through the use of folders, metadata, and a consistent naming convention for documents.

Another suggestion is to avoid sharing fragmented and unconventional analyses in the dataroom. This could confuse investors and indicate that you are not knowledgeable about your business. Include only the relevant information to your business and remove documents that are no longer valid. This will save time and ensure all parties are provided with the most accurate and current information.