M&A Due Diligence Checklist – Important Documents to Include in Your Investor Data Room

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During the due diligence process of M&A transactions, companies disclose sensitive information to advisors and buyers in secure virtual spaces called investor data rooms. These rooms are usually monitored and secured to ensure that the information is safe and does not end up in the wrong hands. Top virtual data room providers provide due diligence checklists that can be used to streamline the collection process and ensure that all relevant documents are gathered carefully.

Documents you need to include in your data room www.floridavdr.com/what-are-virtual-data-rooms-used-for/ may differ depending on the circumstances of the transaction. However there are some documents that are essential to every dataroom:

Legal Information: This includes articles of incorporation as well as intellectual property registrations and employee stock agreements. The cap table is included, which lists ownership percentages and stakes in your business. Founders may also decide to include any previous investor updates, which show investors that they are serious about transparency and communication with investors.

Financial Information This includes historical financial statements and financial statements projected for the future and the assumptions, sources and logic behind these projections. Founders can also include their business plan and product roadmap here.

Founders may decide to split the investor data room and limit access by assigning different users roles. For instance, a section could contain documents on strategy and pitch decks that will be accessible to early stage investors, whereas another section will have more detailed legal documentation for investors who are more serious. This lets them reduce time and effort by only sharing documents they require and also provides them with greater control over the confidential information that is shared.

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