The best practices in data rooms revolve around a logical file structure. These structures help users find information easily, speeding up due diligence and M&A timelines.
To start, a virtual data room index should contain top-tier folders that define overarching themes departments, projects, or themes. These should be accompanied by subfolders to allow for more precise division. A good data room index also includes a folder for important documents as well as recent updates, which informs users that these are the most important resources. It is essential to ensure that the names of folders and files in the virtual data room is consistent.
Once the folder structure has been established, you can begin adding files and documents. A good data room indexes the files as they are uploaded. This makes them searchable. This will save time and effort for users as they can simply use a keyword search to find the data they require.
In addition to indexing and tagging, many data rooms come with a version control function that ensures users are viewing the most current version of a document. This is especially useful when several team members are working on the same project. It ensures that all versions of a file are accurate and current.
A data room gives teams access to document analytics that permits them to track the use of documents in the data room. This provides teams with insight into what types of documents are most popular with investors, giving them an advantage when pursuing capital.