A virtual dataroom (VDR) acts as an electronic repository for sensitive and important information. It’s used to the security of due diligence in corporate transactions. It also serves as an efficient platform for sharing documents with a variety of stakeholders.
VDRs are used most often in M&A transactions when private documents are exchanged between both parties. Financial records, tax documents, contracts with confidential information as well as intellectual property are all part of the deal. These records must be easy to access however, it must be secure from the prying eyes of others.
When choosing a VDR make sure you choose one with robust security features, such as user-level access, multi-factor authentication access expiration and revocation, mobile device management, document tracking and an audit trail of all that site activities. Make sure that the provider is accessible during normal working hours to address any questions or concerns.
It is also important to consider how it’s easy to upload and download large file sizes. Some vendors offer a drag-and drop feature that speeds the process. This is helpful for large-scale projects. Check how easy it will be to view activity reports. This will allow users to stay on top of their document’s activity.
A top-quality provider also has various communication and collaboration tools that include a Q&A feature, comment sections, or even live-chatting. This can help improve efficiency and workflow as well as increase efficiency of teams.
