Virtual Data Rooms are online storage facilities which are used to store and distribute documents. It’s commonly used during the due diligence process in M&A transactions such as loan syndication, private equity and venture capital deals. VDRs are secure, safe ways to share sensitive information with third-parties.
When choosing a VDR provider, look for one that has a variety of pricing options. Some charge a monthly flat cost, while others offer different models, such as per storage and per page or per user. Some also have unlimited plans that permit users to upload and access as much data as they wish.
Find a company that offers a robust security feature, such as antivirus and multifactor authentication and malware scanning. Advanced encryption is a good feature to look for. In addition you should be in a position to restrict access to the level of the file folder. This gives you the flexibility to restrict access based on group members, project or business unit.
Take into consideration the user-friendliness. A great VDR will have an intuitive configuration, and will be accessible to the C-suite and entry-level accountants. Look for a customizable UI colors and reports at-a-glance that can be tailored to highlight key data details.
During the M&A stage, investment bankers and advisers have to share a mountain of documents with regulators and investors. With the appropriate VDR, they can manage documents and streamline tasks while automating processes from a central place. This reduces risks and increases efficient communication between teams. Due diligence is also made more efficient and transparent.
