Companies must review huge amounts of data to support business processes like M&A, bankruptcy, legal issues, restructuring or capital raising. This data could contain sensitive information that could be an extremely risk if it got into the wrong hands. To prevent this from happening the virtual dataroom is used to secure and legally transfer files and documents to the appropriate parties.
If you’re looking to simplify your M&A due diligence process or accelerate your deal’s cycle it’s crucial that your virtual data room has the tools required to work from anywhere with secure access to data. In addition to the advanced security features, you want an interface that’s simple to use by everyone. The most effective VDRs feature a user-friendly, easy-to-use interface that requires only a little training.
When evaluating a room virtual, look for the following features:
Folder Templates
Having templates for folders helps you organize the contents of your VDR. They allow you to design an initial folder structure which can help you save time and energy, by removing the need to create one from scratch. These templates can also help ensure that all relevant documents are included in the due diligence procedure. Choose a vendor with various upload options. In the ideal scenario, you will be able to upload several large files simultaneously. This will save you lots of time and effort while preparing for a M&A transaction.
Document Restrictions
A good virtual dataroom should allow you to set distinct restrictions for each document. These can range from limiting access to specific domains, to permitting downloads only on specific platforms. You can also control the ability of users to print or edit documents. Some providers also offer dynamic watermarks that will show the date of access, or an individual code to track users.
Security Features
A virtual data room should have 256-bit AES encryption for storage and transmission to protect your privacy. The VDR should also allow administrators to revoke the access at anytime, and should have backups to ensure that your data is not lost. A good VDR will also be able of detecting unauthorised attempts to access data. It will be able to monitor IP addresses, types of devices and the locations of users who access the system. It will send an email notification if suspicious activity is discovered.
Finally, a good VDR has the capability of Q&A that lets administrators efficiently manage questions and answers between participants. This will help reduce redundancies in the process, and save valuable time that would otherwise be spent sending emails.
Before anyone can access the data in the form of a VDR the user must agree to a non-disclosure or confidentiality agreement. This will ensure that they are not sharing confidential or proprietary information, and also reinforce the importance of privacy and security. A good virtual dataroom will also have numerous reports and analytics. This will give administrators the insights they need to make informed decisions for their organization.