Companies must scrutinize huge amounts of information for business processes like M&A, legal issues, bankruptcy and restructuring or capital raising. This information can include sensitive information that could be the risk of being stolen if fell into the wrong hands. To avoid this happening the virtual dataroom is used to securely and compliantly transfer files and documents to the appropriate parties.
If you’re looking to simplify your M&A due diligence process or speed up the pace of your deal, it’s important that your data room’s virtual counterpart provides the tools you need to work from anywhere, with secure access to your data. In addition to the advanced security features, you’ll need an interface that’s simple for everyone to use. The most effective VDRs feature a user-friendly, basic interface that requires minimal training.
Check for these features when evaluating a virtual data room:
Folder Templates
The use of templates for folders makes it easier to organize the contents of your VDR. They let you create an existing folder structure which saves time and energy by removing the need to build one from scratch. Moreover, these templates help ensure that all relevant documentation is included in the due diligence process. You should also choose a vendor that provides flexible upload options. You should be able to upload multiple large files simultaneously. This will save you time and effort when making preparations for an M&A transaction.
Document Restrictions
A good virtual data room can provide a range of restrictions for individual documents. They could be as simple as restricting access to certain domains to permitting downloads only on certain platforms. You can even control whether recipients are permitted to print or edit documents. Some providers offer dynamic watermarks that show the time or code of access.
Security Features
To protect your information, a virtual data room should be equipped with 256-bit AES SSL encryption for storage and transmission. The VDR should also allow administrators to debar access at any time, and keep a backup so that your data isn’t lost. A good VDR will also be able of detecting unauthorised attempts to access data. It will be able to monitor the IP addresses, devices types, and locations of users who are logged into the system. It will send emails if suspicious activity is detected.
A good VDR will include an Q&A feature that lets administrators effectively manage questions and responses among participants. This can eliminate redundant processes and reduce time spent on sending emails.
Before individuals are able to view data in the VDR they must agree to a confidentiality or non-disclosure agreement. This will ensure that they’re not sharing confidential or proprietary information, and also reinforce the importance of privacy and security. A good virtual dataroom will also have the most comprehensive set of reports and analytics. This will provide administrators with the data they require to make informed business decisions.
