Companies must scrutinize huge amounts of data to support business processes like M&A, legal issues, bankruptcy and restructuring or capital raising. The information could contain sensitive information that could be danger if fell into the wrong hands. To avoid this it is recommended that a virtual data room is utilized to securely share documents and files with the necessary parties while keeping the compliance.
If you’re looking for a way to streamline your M&A due diligence process or speed up your deal cycle it’s vital that your data room’s virtual counterpart provides the tools required to work from anywhere with secure access to data. You want an easy-to-use interface, as well as advanced security features. The most effective VDRs have a simple, user-friendly interface that requires only minimal training.
Be sure to look for the following characteristics when evaluating a data room:
Folder Templates
It is simpler to organize your VDR contents with templates for folders. You can set up an organization template for folders, which will save time and effort since you do not have to start from scratch. These templates also allow you to ensure that all relevant documents are included in the due diligence procedure. It is also important to select a vendor that offers flexible upload options. In the ideal scenario, you will be able to upload multiple large files at the same time. This will save you plenty of time and effort when preparing for an M&A transaction.
Document Restrictions
A good virtual dataroom will permit you to define different restrictions for each document. These restrictions be anything from limiting access to specific domains, to only allowing downloads on certain platforms. You can even control whether recipients are permitted to print or modify documents. Some providers provide dynamic watermarks, which display the date or code of access.
Security Features
A virtual data room should have 256-bit AES encryption for both transmission and storage to ensure your privacy. The VDR should also allow administrators to revoke the access at any time, and keep an archived backup to ensure your data is not lost. A well-designed VDR will also be able to detect attempts by unauthorized users to gain access to data. It will track IP addresses, device types as well as the locations of users who access the system. It can also send out emails when suspicious activity is detected.
A good VDR should include the ability to have a Q&A function which allows administrators to effectively manage the questions and answers between participants. This can help eliminate redundancies during the process and help save time that could otherwise be spent sending emails.
Before anyone can access data stored in a VDR they must sign an agreement of confidentiality or non-disclosure. This will ensure that they are not sharing confidential or proprietary information, and will emphasize the importance of privacy and security in the process. Furthermore, a well-designed virtual data room should have an extensive set of reports and analytics. This will give administrators the information they need to make informed business decisions.