A virtual data room (VDR) is a secure online environment that allows businesses to store and share sensitive information with third parties. VDRs are utilized for due diligence in M&A transactions as well as loan syndication and private equity or venture-capital transactions. They can be used to keep documents for ongoing collaboration with business partners or customers.
When choosing a provider choose a business who takes security seriously. The most secure VDR providers provide multiple layers of security that work together to protect online files and avoid data breaches. Look for ISO 27001 certifications. Find out if there are built-in features such as versions control and other tools to monitor changes to documents in the repository.
In addition to ensuring confidential data is protected, look for an online platform that is simple and easy use. The simpler the platform is to navigate, the quicker it will be to upload, save and review documents during discussions. This will help keep the project on course and result in a more successful outcome.
A strong search function is essential in the case of a VDR. The best providers offer advanced search capabilities that can scan and index files in different formats including PDFs. They also provide document processing, which transforms typed or handwritten documents, paper documents and text stored as images into digitally intelligible information. This allows the process of finding specific keywords easy and can cut down on the time required to finish due diligence.