Preparing a Virtual Data Room for Due Diligence

Companies want to be transparent in their dealings. They accumulate important information, put it into an organized structure, and then try to conduct due diligence. If there are any problems, they need to negotiate with the interested party. This would be cumbersome and time-consuming if done in physical datarooms

We owe the simplification of this process to new software solutions. We will show you how to use those solutions and prepare your due diligence data room. 

Step 1. Select a suitable provider

Going internet shopping for a provider that checks all the right boxes might be time-consuming, but if done correctly, it can save you time in the long run. You should compare, read user opinions, and look for any shortcomings of particular datarooms. 

The top data room providers listed on our main webpage should simplify that decision. We have reviewed and compared most of the virtual data room solutions available on the market — we hope that that will help you make an informed decision. 

Step 2. Use a due diligence checklist 

This is a difficult procedure in itself, so why not simplify it by using a due diligence data room checklist? Organizing your staff and your tasks around a good plan of action is important and healthy for your business. 

With tons of free templates online, you can be sure that you will find something for your use case. We recommend using ready-made templates found online because they cover the most important areas of your data room due diligence process. 

data room due diligence, prepare for due diligence

Step 3. Create a clear structure — folders and subfolders

Remember about the organization from the previous step? This is also the case when it comes to establishing a clear folder layout in your virtual data room. As you have gathered all of the files in Step 3, now you need to find a way to structure them. 

A due diligence data room is equipped with folder templates that enable a better organization of files. With your personalized naming schemes and a key to deciphering those names, you will be ready to get to the next step in our preparation guide. 

Step 4. Set level access and permissions 

After you have done work on your own, you also need to allow others to manage files in the data room. Some employees will need to look through the documents to proofread them, others will make special notes that might come in handy when discussing details with investors. 

This is the time where you allow your coworkers to look through the structure you have built and ask them for feedback. You need to give permission to the crucial personnel and establish who else has access to those sensitive documents in a data room due diligence setting.

Step 5. Invite the investors

After everything has been put into a structure and checked by your colleagues, you can start the last step of your due diligence journey. Inviting the investors into the virtual data room for due diligence is the first step. 

Interested parties will examine files, try to poke holes in the data, and provide feedback. This starts the difficult process, but thanks to the virtual data room due diligence, you can be sure that it will be at least somewhat easier. 


A due diligence process is a must for any kind of business deal. It takes a lot of documentation to do that in a virtual data room for due diligence, but imagine how much harder it would be without it. Follow these steps to make the process easier and start off on the right foot with investors.