External parties, like auditors, legal counsel or regulators, must be able to review documents in a quick and easy manner. This is the function offered by a virtual data room (VDR) which enables businesses to share their documents remotely without the risk of compromising privacy or intellectual property.
When choosing a VDR make sure you choose one that is simple to use and has customizable features. This will help to ensure that all users are comfortable with the software and are able to use it swiftly. This will reduce unnecessary delays in due diligence and collaborative processes. It is also recommended to look for a service provider that offers internal access control, including statistics showing who has looked at or saved files, downloaded them, or printed them.
To make the best decision about a VDR, consider how often a company utilizes it, what size and type of files it’ll need to upload and store, and how many users are expected to use it at the same time. This will let you evaluate prices and narrow your list of providers.
Choose a service who can integrate with other software tools like Slack or CRM apps to remove the need to manually transfer files manually. This will increase efficiency and avoid miscommunications, which can be costly during M&A or during due diligence. Also, look out for at-a-glance reports that provide executives in the C-suite data room for due diligence with the comprehensive overview they need to keep track of progress throughout a deal.