Virtual Data Rooms for Private Placement

For any business that is preparing for a private placement in the future, a virtual information room is an excellent way to quickly share information with potential investors. This includes the private documents required to conduct due diligence and conclude an agreement. It allows investors to access essential information without traveling and can reduce risk by letting you know who has seen the documents and for how long.

During a due diligence procedure the buyer may want to review the full range of documents that pertain to the financial health of the company including audited financial reports, tax returns and balance sheets. To store these documents safely in an organized location which is easy to navigate for potential investors, an online data room could be used. Furthermore, the capability to define permissions at a document level, including viewing, editing, and printing, and to track activity with dynamic notifications and watermarks helps to reduce data abuse and ensure private information is protected.

Virtual datarooms are used by many companies to provide key investor updates each month or every quarter after a deal has been closed. This can include detailed reports on financial performance, as well as KPI dashboards that display how they are performing against their targets and growth patterns. The ability to create folder structures and limit access with NDAs allow companies to efficiently share this type of information with investors all over the world. Additionally document archiving and automated expiration options permit the destruction of old data before it can be access by unintentional users.

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