Virtual Data Room is an online repository that’s utilized for storing and the distribution of documents. It is typically used in the due diligence phase of M&A transactions and loan syndication, as well as private equity and venture deals. VDRs are an effective, secure method to provide sensitive information to third-party parties.
When choosing a VDR provider, look for one that provides multiple pricing options. Some charge a monthly flat cost while others employ different models, such as per storage and per page or per user. Some plans allow unlimited data access and upload users to access as much information as they’d like.
Find a company that has robust security features that include malware and antivirus scanning multifactor authentication, as well a sophisticated encryption. You should also be able to assign permissions to the level of a folder. This gives you the flexibility to limit access based on team members, project participants or even a business unit.
Then, think about ease of the use. A great VDR is one that has an easy setup, and is accessible to the C-suite as well as entry-level accountants. Look for customizable UI colors and at-a glance reporting that can be tailored to highlight key information.
During the M&A stage advisers and investment bankers have to share a mountain of documents with regulators and investors. The best VDR solution allows them to manage document management, streamline tasks and automate processes all from one centralized location. This improves the communication between teams and decreases risk. Due diligence is also more efficient and transparent.