How to Choose a Virtual Data Room Provider

Virtual Data Rooms are online repository sites that are used to save and distribute documents. It is often used in due diligence in M&A transactions including loan syndication, private equity and venture capital deals. VDRs are an extremely secure and safe method to share sensitive information with third-parties.

When choosing a VDR provider, make sure you choose one that has multiple pricing options. Some charge a monthly flat cost while others employ different models such as per storage and per page or per user. Some also offer unlimited plans that permit users to upload and access as much data as they wish.

Find a company that has solid security features that include antivirus and malware scanning multifactor authentication, as well a sophisticated encryption. You should also be able to assign permissions read here about Virtual Data Room to the level of a folder. This gives you the flexibility to limit access according to team members, project or business unit.

Then, think about the ease of access. A great VDR should have a simple setup that is equally accessible to the C-suite as well an accountants with a basic education. Look for a customizable UI colors and at-a glance reports that can be tailored to highlight important data points.

During the M&A stage advisers and investment bankers are required to share piles and piles of documents with investors and regulators. The best VDR solution will allow them to manage document management, simplify processes and streamline tasks from one centralized location. This improves collaboration between teams and lowers risk. It also increases efficiency and transparency during due diligence.