Virtual Data Rooms are online repository sites that are used to save and distribute documents. It’s commonly used during due diligence processes in M&A transactions such as loan syndication, venture capital and private equity deals. VDRs are secure, safe ways to share sensitive information with third-party companies.
When selecting a VDR make sure you choose one that offers a range of pricing options. Some charge a flat monthly cost while others employ different models like per storage, per page or per user. Some also offer unlimited plans data room index that allow users to upload and access as many files as they want.
Look for a service that offers a robust security feature, such as antivirus and malware scanning and multifactor authentication. Advanced encryption is also an option to look for. In addition, you should be capable of setting permissions down to the file folder level. This lets you limit access to a team member or project.
Consider the ease of the use. A good VDR is one that has an easy configuration that is accessible to C-suite executives as well as accountants at the entry level. Look for customizable UI colors and reports at-a-glance that can be customized to highlight important data details.
During the M&A phase, investment bankers and advisors share piles of documentation with regulators and investors. With the right VDR system, they can manage document management and streamline processes while automating processes from a central location. This decreases risk and boosts efficient communication between teams. Due diligence is also made more efficient and transparent.
