The main reason to use a data room is to ensure due diligence in M&A transactions or fundraising transaction that requires the sharing of sensitive information. They are a safer alternative to email and file-sharing services that are free. They offer granular permissions as well as security features such encryption, two-factor authentication homepage and watermarks.

The amount of information required during due diligence will vary based on the size and complexity of the transaction, however it is essential that all parties have access to the same documents. A central data room with clear folder structures, standardized document titles and a master index will make it easier for all stakeholders to navigate and locate the information they need. Grouping similar documents together in subfolders can help speed up the review process.

In the presentation of data, it is important to highlight the most needle-moving KPIs, and not overwhelm slides with irrelevant information. It is the same for sharing non-standard data which may make investors confused or mislead as to the business’s health and growth prospects.

Include a summary slide in each deck to highlight the most important aspects and conclusions you want your audience to draw from the presentation. It allows an investor to alternate between an in-depth look at the numbers as well as the larger picture.