BuildExitReady, an advisory division of 7Mills
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Data room

Also known as Virtual data room, VDR, Deal room

A data room is a secure online repository where a business preparing to sell gathers and organises the documents a buyer needs to examine during due diligence (financial statements, contracts, leases, employee records, intellectual property and similar records), so that approved people can review everything in a controlled, access-logged environment.

Why it matters at exit

Once a buyer starts serious due diligence they will ask for hundreds of documents, and how quickly and completely you can produce them shapes both their confidence and their final offer. A well-ordered data room lets the buyer verify what you have claimed, which keeps the deal moving and reduces the risk of a late price reduction (a retrade) when a problem surfaces unexpectedly. Missing contracts, unsigned agreements or disorganised files tend to make a buyer assume the worst and either lower the price or attach conditions to the deal. Building the room during preparation rather than mid-sale gives you time to find and fix gaps on your own terms instead of under a buyer’s deadline.

Relates to the Mill Documented Process →

Frequently asked questions

When should I start building a data room?
Well before you go to market, ideally during the same preparation phase in which you are getting the business ready to sell. Setting it up early lets you spot and resolve problems (expired contracts, agreements that were never put in writing, incomplete records) on your own schedule, and keeping it current means you are not scrambling when a real buyer appears.
Do I need a paid virtual data room, or will a shared drive do?
During early preparation, a well-organised shared folder is usually enough to get your documents in order. Once a genuine buyer begins due diligence, a proper virtual data room is worth it because it controls who can see each document, logs every file that is opened, and lets you withdraw access if the deal falls through. Pricing varies by provider and the volume of documents, but for a business of this size you should typically budget a few hundred euros per month for the active deal period.

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