Whether you are using your virtual data room (VDR) for an upcoming financial transaction or as a corporate document repository, it is important to consider who needs access to your data. Having the appropriate permissions established ahead of time will allow your business transactions to move smoothly and prevent unnecessary hiccups that could ultimately delay a deal. Below are some of the primary groups who will need access to your data.
Leadership/Internal Stakeholders
Ensuring that all of your executives and leadership team have an efficient way to access company information can help prevent breakdowns in communication, especially when they’re spread across multiple offices. Virtual data rooms also offer the ability for executives to share sensitive corporate documents with only those employees who need access to specific information.
Board of Directors
Board members often insist on being heavily involved with a company’s leadership team and other facets of the operations. But, board members do not always reside nearby, nor do they make frequent visits to the office headquarters. In these instances, when key personnel are scattered around the globe, it will be critical to have a system in place that allows for instant, secure sharing of information. One of the best ways to ensure that documents are shared quickly and safely is by storing them in a VDR, then granting access to others, including remotely located board members as appropriate.
Human Resources
HR departments responsible for maintaining employee records need a secure system for maintaining confidential information. Employee titles, salaries, benefits, bonuses, health insurance plans, and stock options should all be included in your virtual data room.
Investors
Any reputable investor is going to require you to disclose a ton of information about your operations, practices, and finances, so having meticulous records is a must. Even a small investment is going to involve a fairly detailed review of a company’s dealings, so every item must be managed well. Having well-organized records will both impress prospective investors and facilitate the progress of any investment deal. To ensure records are meticulously maintained, it is a good idea to establish a corporate repository from the very beginning of a company’s existence and to tend to the organization of important documentation on a regular basis. If an online database is utilized, such as a virtual data room, this can easily become the starting point for a deal room in the event a due diligence investigation is necessary.
Strategic Partners
Even if companies do not formally merge or acquire another business, it often makes sense to partner with other firms for the provision of some good or service or to engage in an entirely new venture. As with most partnerships, these sorts of arrangements will no doubt require a substantial amount of data sharing. This is once again a situation in which a VDR will prove invaluable, and it will ease the minds of the leaders involved in the partnership, as they can rest assured that all valuable data will be protected.
To learn more about Virtual Data Room best practices, download your copy of the Data Room Checklist here.
