The main reason to use the data room is to conduct due diligence in M&A transactions or fundraising transaction that requires sharing of sensitive information. They provide a secure alternative to email or file-sharing services. They also offer access to granular security features such as encryption, two-factor authentication and watermarks.

The amount of information needed during due diligence will vary based on the size and complexity of the transaction, but it is essential that all parties have access the same documents. A central data room with clear folder structure along with standard document titles and a master index allows people involved in the process to locate information and navigate. The organization of documents into subfolders that are similar can also streamline the review process.

When presenting data, it is important to emphasize the most needle-moving KPIs and not overload slides with irrelevant data. It is also crucial to avoid sharing non-standard data, which can confuse investors and mislead their impressions of the company’s growth and health.

Include a summary slide on each deck to highlight the main elements and conclusions you would like your audience to learn from the presentation. It allows investors to switch between a deeper dive into the numbers and the bigger view.

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