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A business valuation and data room are essential to business valuation with data room due diligence. This is perhaps the most crucial element of the M&A procedure. A comprehensive and organised virtual data room can be the key to determining whether a deal is closing or not. It gives investors assurance that they won’t discover any hidden unintended consequences.

Your data room should have essential documents that are used for fundraises generally, such as a pitch deck as well as basic financials, such as cash metrics, revenue projections and a cap table, recent investor updates, an updated list of commitments, and future events. The VC will want review all of your legal documents including your term sheet and agreements with other investors, existing loan facilities, and the most recent documents for your company such as copies of the amended or restated articles as well as board resolutions.

Another essential document to provide is your competitive analysis, showing that you are aware of your market and that your product is well-positioned. You should also share customer references and referrals which will reassure a potential buyer that your product is gaining traction.

It’s also important to keep up-to-date your data room on a regular basis to show that you are committed towards transparency and communication. This can be in the form of a monthly or quarterly report that highlights the key highlights as well as any important metrics. Some companies have an KPI Dashboard, which indicates that they are committed in engaging with their investors.

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