Due to the current COVID-19 situation, it is increasingly common for data room to be set up virtually for due diligence. Some points to take note when preparing virtual data room (VDR):

• Organise the VDR in a user friendly-manner for the parties accessing the VDR.
• Separate documents into different folders according to the nature of the documents e.g. corporate secretarial documents, agreements, employment contracts and financing documents.
• Index and label the documents and folders clearly.
• Ensure information in the VDR is as complete as possible e.g. copies of agreements which are uploaded in the VDR are the dated, signed and stamped copies and complete with all the appendices to the agreements.
• Have a system to notify parties who are carrying out due diligence when new documents are uploaded.
• To maintain confidentiality, restrict access to the VDR via security measures such as password. Keep a list of persons who have access to the VDR.
• Limit the number of persons who can add or remove documents to ensure integrity of the VDR.
•  If feasible, keep track of when the documents are uploaded. Some VDRs come with such features.

Do you have other points to add on?

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This post was first posted on Linkedin on 14 March 2021.