The most crucial business transactions require a large amount of data to be examined and communicated in a timely manner. When this sensitive information falls into the wrong hands, it could make a deal unprofitable and cause a company to lose revenue or market share. This is why it is essential to ensure that only the right people are looking over the right information at all times. A virtual data room can prove very useful in this scenario. A virtual dataroom (VDR) streamlines due diligence and M&A while protecting confidential documents.
A VDR is a secure online repository that is able to securely store business-critical documents and allows restricted access for internal and external stakeholders. It also helps reduce the possibility of file sharing without authorization by offering security-first functions like multifactor authentication, session-timeouts for documents, document level access, watermarking, and view-only modes. A VDR is an ideal solution for M&A due diligence and other high-risk transactions.
VDR providers differ in terms of price as well as ease-of-use and features. The most effective options for businesses are those that can offer a centralized repository with flexible data permissions, granular activity reports, and custom metadata. They should also provide support and security certificates which help ensure the integrity of the system in the event in the event of an accident.
Datasite, RR Donnelley and Intralinks are the most popular providers. Each offers a robust feature set and specialized tools for M&A However, their pricing varies widely. In the lower price tier there are some providers such as Digify that offer meager functionality with a complicated pricing structure.