Build a clean

data room


Who this is for

Founder led lower-middle market companies with 5 to 50 million in annual revenue preparing for lending, investment, or M and A.

The quick answer

Use a clear index and folders. Corporate records, cap table, financials and forecasts, tax, legal and contracts, HR, IP, operations, sales and pipeline, customer metrics, and insurance. Use standard names and dates, remove duplicates, and lock permissions to need to know. Add a short FAQ and an updates log so reviews stay smooth.

The method in nine steps

  1. Create the index
    Top folders. Corporate. Cap table. Financials and forecasts. Tax. Legal and contracts. HR. IP. Operations. Sales and pipeline. Customer metrics. Insurance.

  2. Set naming rules
    File name, period or date, and status such as final or draft. Use the same pattern across folders.

  3. Load clean documents
    Remove duplicates and out of date files. Add missing signatures and exhibits.

  4. Control permissions
    Grant need to know access. Use view only unless edits are required. Add watermarks for sensitive files if needed.

  5. Add a short FAQ
    Answer the most common questions once. Point to the folder where evidence lives.

  6. Keep an updates log
    Date, file name, folder, and summary of change. This cuts confusion and repeat requests.

  7. Redact where required
    Mask personal data and confidential customer terms where not essential to the review.

  8. Prepare a Q and A path
    Use a single channel for questions. Assign owners and respond within two business days.

  9. Test with a dry run
    Ask an outside operator to try to find five items. Fix the items that took too long to locate.

Example

A firm used a clean index, standard names, and a live updates log. Both the bank and a strategic investor finished reviews faster with fewer back and forth emails.

Pitfalls and fixes

  • Folders that mirror internal chaos. Use a standard index.

  • Many versions of the same file. Keep one final and archive drafts.

  • Open permissions. Lock to need to know and log changes.

Checklist

  • Standard index and naming rules

  • Clean files loaded

  • Permissions set and tested

  • FAQ and updates log posted

  • Q and A path with owners

  • Dry run complete

Related links

  • Prepare for lenders and investors

  • Standard customer contracts

  • Manage intellectual property

Want a data room that speeds diligence and builds trust. Contact Founded Partners and we will build the index, clean the files, and set the review process with you.