When it is sharing sensitive documents beyond the firewall, a lot of companies depend on virtual data rooms (VDRs) to ensure that contracts and other documents are safely transmitted. A quick online search shows that there are numerous VDR providers, offering the option of a variety of prices, capabilities, user-friendliness, and efficiency. The wrong VDR can cost a project time, money, and even credibility.
In this article, we will discuss the various factors you should take into consideration when choosing a VDR service for your due diligence or M&A projects. We will discuss the most crucial features of a good VDR and provide recommendations for finding a quality solution that meets your specific needs.
When conducting M&A due diligence, the most common scenario for using a virtual data space is reviewing the financials of a target company. It is important that companies, whether they are looking to buy or sell a business or both, have access to due diligence tools and techniques.
Among the most important features of a reliable VDR include dynamic watermarks which can stop unauthorized distribution. To safeguard confidential information, it is important to have granular access rights for documents, such as redaction and fence viewing. A reliable VDR should also have an intuitive and clear access hierarchy for both individual users and groups. Monitoring user activity and creating custom reports are also helpful features. You can check who is logging in which websites they are browsing, and how long.
