Virtual Data Rooms are online storage facilities which are used to store and distribute documents. It is commonly utilized during the due diligence phase of M&A transactions and loan syndication, as well for private equity and venture deals. VDRs offer an secure and safe platform for sharing sensitive information with third-party companies.
When deciding on a VDR make sure you choose one that provides a range of pricing options. Some charge a flat monthly fee, while others have different models, such as per storage and per page or per user. Some plans provide unlimited access to data and uploading users to access as much data as they’d like.
Look for a partner with robust security features like malware and antivirus scanning multifactor authentication, as well as advanced encryption. Additionally you should be capable of setting permissions down to the level of a file folder. This lets you restrict access for each team member, project or business unit.
Then, think about ease of access. A great VDR should have a simple configuration that is accessible to the C-suite as well an accountants who are just starting out. Look for customizable UI colors and a quick-reporting feature that can be tailored to highlight key data points.
During the M&A stage, investment bankers and advisers share piles and piles of documents with regulators and investors. The right VDR solution will allow them to manage document management, simplify tasks, and automate processes in one central location. This increases communication between teams and reduces risk. Due diligence is also made more effective and transparent.
