Data Room Checklist for M&A Due Diligence

A data room checklist is an inventory of documents companies must submit in due diligence for M&A or fundraising. It contains financial records as well as legal files as well operational information to ensure a transparent and efficient review process. Data rooms facilitate the M&A process by allowing businesses to work together securely within a synced system with banks-grade security.

Best practices for data rooms include predicting which documents will be required by investors, and converting physical files into digital versions. This procedure should be as thorough and complete as you can to avoid last-minute requests or delays in closing an agreement.

For instance, buyers would like to know if the company has an extensive customer base that could serve as references and testimonials. This information can be displayed in a specific section of the dataroom for prospective investors.

Prospects also want to know more about your management and employees. In a specific section where you can include resumes of employees and their salaries, pension details as well as equity percentages and the performance records. If your company is focused on products, you may want to include a detailed competitive analysis of the company’s features and products.

It is important to virtueller datenraum keep in mind that successful M&A deals aren’t completed if the due diligence (DD) procedure isn’t properly executed. McKinsey discovered that issues that aren’t addressed can decrease the value of an acquisition at the end of the merger by 70 percent. Fortunately, a well-organized data room and effective project management tools can increase your M&A efficiency and lower the chance of missing due diligence requirements.