How to Choose a Virtual Data Room
As the due diligence process for M&A transactions becomes more complex, businesses are turning to virtual data rooms (VDRs) to provide a reliable secure way to share and review documents. But how do you choose the most appropriate VDR to meet your company’s particular requirements?
Begin by identifying your objectives. Choose the top VDRs that will meet your requirements. Check their websites and read testimonials. Look for a streamlined modern interface that provides both simplicity and efficiency.
Make sure the VDR is fully integrated with your other technology tools after you’ve narrowed your options. A well-integrated platform can allow users to quickly switch from one application to the next which will speed up your due diligence and other workflows.
Another consideration is whether VDR has either a bottom-up or top-down filing system. Top-down systems make use of subfolders and logical folders that assist users in navigating files. This type of structure is a great fit for larger projects and for companies that need to organize their data by department or project phase.
Be sure to look at the security features see this page that each provider provides. Data loss is costly and puts thousands or even millions of people at risk. When you shop, look out for providers that aren’t ISO 27001-compliant. They also do not provide two-factor authentication for password theft prevention as well as digital watermarking that prevents document reproduction. The best-in-class VDR providers also provide 24-hour customer support that’s multilingual and can help you learn about the features and functions of their solution.