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

In the due diligence process of M&A transactions, companies disclose sensitive information to advisors and buyers through secure virtual spaces known as investor data rooms. These rooms are usually monitored and secured to ensure that the information is safe and does not get into the wrong hands. The best virtual data room providers provide due diligence checklists that can be used to make the collection process easier and ensure that all relevant documents are gathered with care.

Documents that you should include in www.floridavdr.com/organizing-your-documents-in-the-data-room/ your data room will vary according to your specific situation and the transaction. However there are some documents that are essential for every data room:

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 are able to include old updates to investors which can show investors that they take serious the importance of transparency and communication for investors.

Financial Information: This includes historical and projected financial statements and explains assumptions, sources and the rationale behind those projections. Founders may include their product roadmap and business plan.

Founders may choose to divide the investor data area and limit access to different users by assigning roles. For instance, one section might contain documents for strategy and pitch decks which will be available to investors in the early stages, while the other section will have more detailed legal documents for investors with more serious intentions. This lets them save time by only sharing the documents they require, and allows them to control how sensitive information is shared.

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