A Virtual Data Room is an ideal platform for exchanging confidential documents with third parties in due diligence for M&A, partnerships, financing, and asset sales in a quick, safe, and organized way. But not every data room is created equal. Search for one that offers the highest degree of features and functionality when shopping for a virtual data room but also one that is easy to use and fast to deploy. A successful virtual data room would need very limited training, and in the matter of an hour or two, not days, it should be able to be filled with comprehensive due diligence content. When assessing the application’s simulated data rooms, search for the following features and characteristics:
- The ability to have control over documents: The ability to secure and control sensitive documents when exchanging them with third parties lies at the heart of any new computer data center. A successful virtual data room requires encryption of an enterprise-level, even on computers and devices outside the reach of the IT department of a company. Such an encryption framework should be applied consistently, irrespective of whether records are being displayed on devices running Windows, Macs, or iOS.
- The ability to organize and present valuable content: A good VDR should make the presentation of your documents in a structured, attractive and professional manner intuitive and accessible, enabling efficient and rapid review on all devices. Look for a VDR that has the additional flexibility to organize tagged documents, rather than merely a folder structure. It is often essential to put the same file in your bureaucratic structure, in multiple locations. With due diligence, this can be particularly important. You’re required to make copies of the data with a folder layout and position the copies appropriately. In addition to the cost of additional storage, this needs the version control to keep track of each of the versions of the same text. You tag the same file with different tags with a tag layout, and the corresponding data gets noticeable at each venue.
- Able to utilize monitor user activity: The VDR that you choose will allow you to monitor who has seen what, when, and for how long. A VDR with complete user activity tracking creates not only comprehensive, compliance-related audit trails but also offers useful business intelligence in the development of your users’ document review. For example, if HR members and legal, due diligence teams spend a lot of time reviewing employee complaint records, then you will know that they have liability concerns, and you can proactively address these concerns.
- It must have a secure and reliable cloud infrastructure: Before finding a virtual data room, you need to ask some questions to decide if their servers are based at world-class data centers and operated by a high-end service provider. Ensure the provider delivers comprehensive security and reliability via multiple redundancy levels. Determine the high availability of servers with hot-swappable components, and the high safety of the data center infrastructure, including redundant network connectivity, power systems, cooling systems, routers, and cabling.
- Knowledgeable about how to accelerate document preparations and review: Timelines in due diligence are often being shortened, which render consistency and reliability important. The VDR you chose will help you to set up and maintain your site quickly and easily, without constant clicking anguish. Search for a VDR that streamlines routine management and configuration activities. The administration should not be clunky, sluggish, or irritating, especially when making bulk adjustments to your content’s permissions, policy, or organization.
- It must have a seamless integration of any existing technology: Today’s modern interactive data room provides many ways to incorporate the data room effortlessly into your current business processes. The VDR you select will offer a versatile, secure web services API that helps you to build, customize, and manage the virtual data room programmatically and to incorporate it deeply into your company workflows. Search for the option to use embeddable widgets and single-sign-on so users can log in to the current secure web application and press the VDR to open.
- It must have a reliable and available service and support team: A good virtual data room should be easy to set up, intuitive to use, and require very little training, but when the need arises, it should also provide unparalleled 24/7 support. Do not be afraid to ask you, virtual data provider, with the following questions:
- What kind of assistance is offered during my VDR configuration, setup, and deployment?
- Will I have a committed project manager who will not only help set up my VDR but also provide advice on how my project can get streamlined?
- Will the preparation I undergo should be customized to my application’s specific requirements? Can you offer support by mobile 24/7/365?
- Would you accept the collaborative sharing of screens to accelerate problem-solving?
- Does the transfer from other VDRs or file-sharing schemes require your support?
Note, a virtual data room may be a vital tool for enabling contract deals and other applications where a safe exchange of confidential documents is essential. Choosing the right virtual data room with the advanced functionality that you require, however, can be the difference between an efficiently streamlined process and an aggravating one and successful compromises.