Done Deal perspective: A comprehensive data room is an essential prerequisite for any capital event - fundraising or acquisitions. Keeping a data room ready has several advantages -
We have put together some of the important sections in a data room. At Done Deal, we plan to put together products to help founders streamline all steps in a capital event process. A well-organized data room with these sections is critical for potential investors and partners to conduct thorough due diligence and can have a large impact on valuation as well as likelihood of deal closure. Transparency and trust, get built or can be broken, during a diligence process
This section establishes the foundational company information and includes data on current capitalization, shareholding structure, funds raised till date and credit rating reports.
Financial transparency is paramount. This section encompasses audited balance sheets, profit and loss statements for multiple fiscal years (usually the last 3 years), projections for the current year, cash flow statements, expansion plans, ongoing projects, provisional financials, feasibility reports, 5-year financial projections, asset registers, IP documentation, and various loan-related documents.
This section focuses on the company's leadership and organizational structure. It provides profiles of the Board of Directors, key management personnel, salary structure, organizational charts, and details about Employee Stock Ownership Plans (ESOP)
Legal documents such as Memorandum of Association, Article of Association, Certificate of Incorporation, annual returns, registrations with regulatory authorities, licenses and permits, legal case details, and documents required for compliance are contained in this section.
This section delves into operational metrics, MIS reports, including competitive benchmarking, target audience, market share, product profiles, and working capital ratios.
Crucial for assessing the financial health of the company, this section comprises information about key clientele, revenue models, revenue profile (B2B, B2C, sticky clients, churn), sales channels, monthly financial reports, salary registers, pricing, credit, return, and warranty policies, as well as other documents related to expenses.
This part provides insights into the company's tax records, including income tax computations, advance tax payments, ITR forms, GSTR documents, annual GST returns, and reconciliation statements.
The final section includes various agreements, IT policies, internal company policies, photographs of facilities, valuation and credit rating reports, market studies, and additional documents.