Virtual Data Room is an online repository utilized for storing and the distribution of documents. It is often used in due diligence in M&A transactions such as loan syndication, venture capital and private equity deals. VDRs provide a secure and safe method for sharing sensitive information with third parties.
When selecting a VDR provider, make sure you choose one that provides multiple pricing options. Some VDR providers charge a flat cost per month, while others charge per page or storage. Some plans offer unlimited access to data and upload users to access as much information as they’d like.
Find a service provider with solid security features that include antivirus and malware scanning multifactor authentication, as well a sophisticated encryption. Additionally you should be capable of setting permissions right down to the folder level. This gives you the flexibility to restrict access based upon team members, project or business unit.
Consider the ease of access. A great VDR will have an intuitive setup, and is accessible to the C-suite as well as accountants with a basic education. Look for customizable UI colors and at-a glance reports that can be tailored to highlight key data details.
During the M&A phase advisors and investment bankers provide a wealth of documentation to investors and regulators. The best VDR solution will allow them to manage document management, streamline tasks and automate processes from a single location. This reduces risks and increases efficiency in communication across teams. Due diligence is also more effective and transparent.