Virtual Data Rooms are online storage facilities which are used to store and distribute documents. It is commonly used in the due diligence phase of M&A transactions and loan syndication as well as in private equity and venture deals. VDRs offer security and safety to share sensitive data with third party.
When deciding on a VDR, choose one that offers a range of pricing options. Some VDR providers charge a flat rate per month, whereas other charge per page storage, user. Certain plans provide unlimited access to data and uploading users to access as much data as they’d like.
Look for a partner with solid security features that include malware and antivirus scanning multifactor authentication, as well a sophisticated encryption. In addition you should be able to set permissions down to the folder level. This lets you limit access to team members, project or business unit.
Consider ease of use. A great VDR will have an intuitive configuration that is accessible to the C-suite as well as entry-level accountants. Look for a customizable UI colors and at-a-glance reporting that can be tailored to highlight key data details.
During the M&A stage advisers and investment bankers have to share a mountain of documents with regulators and investors. With the appropriate VDR system, they can manage documents and streamline tasks while automating processes from a central point. This decreases risk and boosts the effectiveness of communication across teams. Due diligence is also made more efficient and transparent.
