In order to conduct the most important business transactions, a large amount of information must be reviewed and shared rapidly. When this sensitive information gets into the incorrect hands, it could make a deal unprofitable and cost a business revenue or market share. That’s why it’s important to ensure that only the right people are examining the right information at all times. A virtual data room can be very beneficial in this situation. A virtual data room (VDR) can simplify due diligence and M&A virtual data room processes, while also protecting confidential data.
A VDR is an online repository that can store essential files in a secure way and allows controlled access to internal or external stakeholders. It can also reduce the risk of file sharing that is not authorized by enabling security-first features such as multifactor authentication session-timeouts for documents, document level permissions, watermarking, and view-only modes. A VDR is an ideal solution for M&A due diligence and other high-risk transactions.
VDR providers vary in terms of features, ease-of use, and cost. Businesses should select one that provides an integrated repository that can be customized with permissions for data, thorough activity reports, and customizable metadata. They should also provide support and security certifications, which will help ensure the integrity of documents in case of an incident.
The most popular providers are Datasite, RR Donnelley, and Intralinks. Each one of them has a comprehensive set of features and specialized M&A tools However, their pricing varies. Digify is one example. It offers a limited set of features that have a complex price structure.