Virtual Data Rooms are online storage facilities which are used to store and distribute documents. It is often used in due diligence processes in M&A transactions such as loan syndication, private equity and venture capital deals. VDRs provide a secure and safe method for sharing sensitive information with third party.
When you are choosing a VDR select one that has a variety of pricing options. Some VDR providers charge a flat amount per month, while other charge per page, storage or user. Some also offer unlimited plans that permit users to access and upload as many files as they want.
Search for a partner that offers robust security features including antivirus, multifactor authentication, as well as malware scanning. Advanced encryption is a good feature to look for. You should also be able to define permissions at the level of a file folder. This gives you the flexibility to restrict access based upon team members, project participants or even a business unit.
Finally, consider the ease of the use. A reliable VDR will have an intuitive configuration that is accessible to the C-suite as well as accountants at the entry level. Look for customizable UI colors and reports at-a-glance that can be tailored to highlight important data points.
During the M&A stage advisers and investment bankers have to share a mountain of documents with investors and regulators. The right VDR solution allows them to manage document management, simplify Virtual Data Room tasks and automate processes all from one centralized location. This improves communication between teams and reduces risk. It also increases efficiency and transparency during due diligence.
