www.dataroomgames.com/common-data-room-mistakes-to-avoid/

As M&A transactions become more dependent on technology virtual data rooms are now essential tools for businesses looking to communicate confidential business information to potential buyers and advisors. VDRs can be used without proper planning, however this can lead to costly errors that could cause damage to the integrity of data shared. In this article we will examine some of the most frequent mistakes that can be made with virtual data rooms and how to avoid them.

Document Organization

When creating a due diligence data room it is important that documents are organized logically to make it easier for users to locate the information they need. You should, for example, create folders and underfolders for different types of documents you’ll be storing in your data room. Also, you must name your subfolders and folders clearly so that any user can identify what they contain.

Don’t give too much information.

Only include the documents that are necessary in your data room to ensure due diligence. This will ensure that the data you share is relevant and can be used to improve your business. Additionally, you should reduce the number of documents you have in your data room to avoid it from becoming too cluttered and unwieldy.