M&A transactions require sharing large volumes of information with a variety of stakeholders. A virtual data room is an encrypted platform for sharing files that streamlines due diligence procedures, increases efficient collaboration, and decreases risks and costs for both parties. A VDR has advanced security features, including multi-factor authentication, session timeouts and location restrictions. It also allows for streamlined M&A compliance and document management.
A VDR can also be used to communicate confidential documents to external third parties without risking violating compliance or privacy regulations. A company may need to communicate with the board member who does not use the same technology. In these instances VDRs are a great option to send important content via email, secure file-sharing and managed file transfer APIs.
VDR providers offer a variety of pricing options, including per storage, per page, and per user. The best choice for you is determined by the amount of data you want to store, how many users you’d like to invite, as well as any additional features you may require. Choose a company with a trial offer so that you can try the software to see if it meets your needs.
A VDR should be a simple, easy configuration that is as easy for a CFO to comprehend as it is for an entry-level accountant. It should also provide a wide range of deployment options, including one sign-on option for all projects. Lastly, it should offer support around the clock.