The most crucial business transactions require a substantial amount of information to be examined and shared in a timely manner. This sensitive information could ruin a deal or cost a company valuable market share and revenue if it falls into the wrong hand. That’s why it’s important to ensure that only those who are authorized to review the right information at all times. A virtual data room could be very beneficial in this case. A virtual data room (VDR) can simplify due diligence and M&A processes, while also protecting confidential files.
A VDR is a secure online repository that secures the storage of documents that are essential to business and provides controlled access for internal or external stakeholders. It also helps reduce the risk of file sharing that is not authorized by enabling security-first features such as multifactor authentication, session-timeouts and document level permissions, watermarking and view only modes. A VDR could be a perfect solution for M&A due diligence as well as other high-risk deals.
VDR providers differ in terms of features, ease-of use, and price. The best options for companies are those that offer central repository that can be customized with data permissions, detailed activity reports, and customizable metadata. They should also offer support and security certifications that will ensure the security of documents in the event of an incident.
The most popular ones include Datasite, RR Donnelley, and Intralinks. Each of them has a robust feature set and specialized tools for M&A, but their pricing differs widely. Digify is one example. It provides a limited number of features that have a complex price structure.