The correct structure of a folder is a crucial element of a successful data room due diligence. There are numerous ways to organize your files according to a specific set of criteria, like department, project stage or the level of confidentiality. The most commonly used method is to organize files into main folders that correspond to specific types of information and then create subfolders that enhance the user-friendliness of the system.

It is a wise project sharing files choice to choose a service that provides a function for indexing files. This function assigns a unique identifier each document and renumbers it automatically when the structure of the folder changes. This will save you lots of time and effort, especially when there are multiple interested parties looking at the same set of documents.

Certain VDR providers even provide the capability of adding watermarks to documents, which discourage recipients from making copies of sensitive documents and help to protect intellectual property in the due diligence process. Typically, these VDRs also offer users to provide terms of agreement for recipients to sign prior to viewing sensitive content. This makes it easier for participants to adhere to regulatory requirements concerning confidential data in certain sectors. It is essential to choose a provider who understands these requirements and provides solutions to address them such as access control and audit trails.