Virtual Data Rooms are online repositories that are used to store and distribute documents. It is often used in due diligence procedures in M&A transactions such as loan syndication, venture capital and private equity deals. VDRs offer a safe and secure platform to share sensitive data with third parties.
When selecting a VDR provider, you should choose one that provides multiple pricing options. Some VDR providers charge a flat cost per month, whereas other charge by the page or storage. Some also have unlimited plans that allow users to upload and access as much data as they wish.
Choose a vendor with robust security features that include antivirus and malware scanning, multifactor authentication and advanced encryption. Additionally you should be in a position to restrict access to the folder level. This gives you the flexibility to limit access according to team members, project participants or even a business unit.
Also, think about ease of accessibility. A good VDR should have a simple configuration that is accessible to C-suite executives as well as accountants who are just starting out. Look for customizable UI colors and reports with a quick glance that can be tailored in order to highlight important information.
During the M&A stage, investment bankers and advisers are required to share piles and piles of documents with regulators and investors. The best VDR solution lets them manage document management, simplify tasks and automate processes all from one centralized location. This improves collaboration between teams and lowers risk. It also improves efficiency and transparency in due diligence.