As the due diligence process for M&A transactions gets more complicated, companies are turning to virtual data rooms (VDRs) to provide a fast and secure method to share and review documents. How do you select the best VDR for your company?
Begin by identifying your objectives. Select a few VDRs that meet your requirements. Review their websites and read reviews from users. Look for a streamlined, modern interface that offers both simplicity and efficiency.
Once you've narrowed down your options, make sure the VDR is fully integrated with the other tools in your tech stack. A well-integrated platform can allow users to quickly switch from one application to the next, speeding the process of due diligence and other workflows.
The filing system of a VDR should be taken into consideration. Top-down filing systems use subfolders and logical folders that aid users in navigating files. This format is perfect for large projects and companies that need to organize their data by department or stage of a project.
Pay attention to the security features that each provider offers. Data loss can be costly and puts thousands, if not millions, of individuals at risk. When shopping, you should be wary of vendors that are not ISO 27001-compliant and do not provide two-factor authentication for security against password theft as well with digital watermarking to stop the reproduction of documents. The top VDR providers provide 24/7 customer support in multiple languages that can help you understand their features and functionality.