Virtual Data Rooms are online databases that are used to save and distribute documents. It’s commonly used during due diligence procedures in M&A transactions as well as loan syndication, venture capital and private equity deals. VDRs are secure, safe ways to share sensitive information with third-parties.
When selecting a VDR provider, you should choose one that offers multiple pricing options. Some charge a monthly flat cost while others employ different models, such as per storage and per page or per user. Some also have unlimited plans that allow users to access and upload as many files as they want.
Find a company with robust security features, such as antivirus and multifactor authentication and malware scanning. Advanced encryption is an option to look for. Additionally you should be capable of setting permissions right down to the level of a file folder. This gives you the flexibility to limit access according to team members, project or business unit.
Consider the user-friendliness. A good VDR will have an easy-to-use configuration that’s equally accessible to the C-suite and accountants who are just starting out. Look for a customizable UI colors and at-a glance reports that can be customized to highlight key data points.
During the M&A stage, investment bankers and advisers share piles and piles of documents with regulators and investors. With the appropriate VDR, they can manage documents and streamline tasks while automating processes from a central location. This increases collaboration between teams and lowers risk. Due diligence is also more efficient and transparent.