Virtual Data Rooms are online repositories that are used to save and distribute documents. It’s often utilized during due diligence processes in M&A transactions, loan syndication and Virtual Data Room Index venture capital and private equity deals. VDRs provide a secure and safe method to share sensitive information with third parties.
When selecting a VDR provider, make sure you choose one that has multiple pricing options. Some VDR providers charge a flat cost per month, whereas other charge by the page, storage or user. Some also offer unlimited plans that allow users to access and upload as the amount of data they want.
Search for a partner that has robust security features like antivirus, multifactor authentication, as well as malware scanning. Advanced encryption is a good feature to look for. In addition, you should be capable of setting permissions down to the level of the file folder. This gives you the flexibility to restrict access based upon group members, project or business unit.
Finally, consider the ease of the use. A great VDR should have a simple configuration that’s equally accessible to C-suite executives as well as accountants who are just starting out. Look for a customizable UI colors and at-a-glance reporting that can be tailored to highlight important data points.
During the M&A phase, investment bankers and advisors are required to share documents with investors and regulators. The right VDR solution enables them to manage document management, simplify tasks and automate processes all from one central location. This increases collaboration between teams and lowers risk. Due diligence is also more efficient and transparent.
