Five reasons why your business should use a Q&A-function during a due diligence
Blog post by Emelie Jarnesten, former Head of Virtual Data Rooms in Sweden
The main purpose of using a data room in a transaction is to share information and communicate with external parties in a secure manner.
A well-developed Q&A-function has become a commodity in most data rooms today. Nevertheless, we often experience that our clients don’t use this function as effective as they could. Some companies are still handling questions via email and are sending over Excel-sheets to external parties. This is both time-consuming and not secure.
Since its essential not to lose momentum in these often-tight scheduled transactions, we put a lot of effort into educating the administrators and users. Using our Q&A-function will make the whole process run more smoothly.
Five reasons why your business should use Q&A-function:
• Keep control of what, who and when a question or answer is conducted
• Keep the dialog within a safe environment
• Handle multiple external groups questions in a structured way
• If any legal disputes come up in relation to asked or answered questions – the Q&A report will work as a master document. This means that nothing can be changed or erased
• Using different settings in the Q&A-function will make the whole process more structured.
Some of those settings are highlighted below:
Some advice in relation to conducting a Q&A-session
Key users. Make sure that you have some key users in each group who are responsible to either publish or answer a question. We call these gate keepers.
Since the gate keepers are the only ones that can publish or answer a question, this will
reduce duplicates and minimize the risk of the Q&A-session turning into a chat room.
Focus on your topic: For example – if you are a legal advisor make sure to subscribe to the part of the data room which concerns your expertise. This means that when a new document or question is posted in relation to that area, you will receive a push notification by email. This will keep you informed and updated on your topic!
Control the Q&A-session: Set a time-limit for how long a group can ask questions, this will make the Q&A-session more manageable for the ones answering the questions.
Q&A in a data room from Admincontrol
As a data room supplier, it is important for us to make the transaction as effective as possible for everyone involved. Our data room is continuously developed with input from our clients, and we have recently done several updates to our Q&A-function.
Feel free to contact us and we will walk you through our Q&A-function, best practice and new features!
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