For business processes like M&A capital raising, legal matters such as bankruptcy and restructuring, companies need to review a vast amount of information. This information may contain sensitive information that could pose the risk of being stolen if ended up in the wrong hands. To avoid this it is recommended that a virtual data room is used to secure share documents and files with the right parties, while ensuring the compliance.
Whether you’re looking to streamline your M&A due diligence process or accelerate your deal cycle, it’s important that your virtual data room provides the tools you need to work from anywhere, with secure access to your data. You’ll want a user-friendly interface, along with advanced security features. The best VDRs offer a simple, intuitive interface that requires no training.
When you evaluate a virtual room check for the following features:
Folder Templates
It is simpler to organize your VDR contents by using folder templates. You can build an initial structure for folders and save time and effort, as you do not need to start from scratch. These templates can also help ensure that all relevant documents are included in the due diligence process. Choose a vendor who offers an array of upload options. In the ideal scenario, you will be able to upload multiple large files simultaneously. This will save you time and effort when preparing for an M&A transaction.
Document Restrictions
A reliable virtual data room will offer a variety of restrictions for specific documents. They can range from restricting access to specific domains to allowing downloads only on certain platforms. You can even control the possibility of recipients printing or modify documents. Some providers provide dynamic watermarks that show the date or time of access.
Security Features
A virtual data room must include 256-bit AES encryption in storage and transmission to protect your privacy. The VDR should also permit administrators to block access at anytime, and also have an archived backup to ensure your data is not lost. A reliable VDR can also be able to detect unauthorised attempts to access data. It will track the IP address, device type and where users log into the system, and will send out email notifications in the event of suspicious activity being detected.
In the end, a great VDR has an Q&A feature that allows administrators to efficiently handle questions and answers from participants. This can reduce the number of redundancies in the process, and save precious time that would otherwise be spent sending emails.
Before anyone can access the data in a VDR they must agree to a non-disclosure or confidentiality agreement. This will ensure that they are not sharing proprietary or confidential information and will reinforce the importance of privacy and security in the process. A good virtual data room will have a robust set of reports and analytics. This will provide administrators with the data they require to make informed business decisions.
