In order to conduct the most important business transactions, a huge amount of information must be analyzed and shared swiftly. This sensitive information could ruin an agreement or cost a company valuable market share and revenue when it is in the wrong hand. That is why it is vital to ensure only the right people are reviewing the proper information at all times. This is where a virtual data room can be useful. A virtual dataroom (VDR) simplifies due diligence and M&A while securing confidential documents.
A VDR is an online secure repository that safely stores documents of a high-value for business and permits restricted access to internal and external stakeholders. It also minimizes the possibility of file sharing without authorization by enabling security-first features such as multifactor authentication, session-timeouts and document level permissions, watermarking, and view-only modes. A VDR is an ideal solution for M&A due-diligence, as well as other high-risk transactions.
VDR providers differ in terms virtual data room of features, ease of use, and cost. The best options for businesses are ones that can provide central repository that can be customized with data permissions, detailed activity reports, and customizable metadata. They should also provide support and security certificates, which will ensure the security of documents in the event of an incident.
Datasite, RR Donnelley and Intralinks are the most favored providers. Each offers a robust feature set and specialized tools for M&A However, their pricing is different. Digify, for example, provides a limited number of features with a complex price structure.