A proper structure for your folders will allow you to conduct diligence in a data room. There are several approaches to organizing files according to specific criteria, such as the stage of the project department or confidentiality. The most common method is to divide the files into main folders which correspond to certain types of information and then create subfolders to improve the user-friendliness of the system.
It is a good idea to select a provider who has a feature for indexing files. This feature assigns a unique identifier each document and renumbers it automatically whenever the structure of the folder changes. This will make it easier to save time and effort, particularly when there are several interested parties reviewing the same set of documents.
Some VDR providers even offer the functionality to add watermarks to files, which makes it difficult for recipients to make copies of sensitive documents and will aid in protecting intellectual property during the due diligence process. Additionally, they often include the functionality that allows users to provide conditions of access agreements for recipients to accept before they can access the content that is sensitive. This makes it easier for participants to meet regulatory requirements for confidential data in certain industries. It is important to select a provider that understands these requirements and offers features that meet them, such as access control, audit trails and granular user permission management.