The most critical business transactions require a large amount of data to be examined and quickly shared. If this sensitive data falls into the wrong hands, it can ruin a deal and cost a business revenue or market share. It is crucial to make sure that only the right people have access to the information at all times. This is the point where a virtual data room can be useful. A virtual data room (VDR) can simplify due diligence and M&A procedures, while also protecting confidential data.
A VDR is a secure online repository that safely stores documents of a high-value for business and permits restricted access to internal and external stakeholders. It also helps reduce the risks of unauthorised file-sharing by offering security-first functions like multifactor authentication session-timeouts, document-level permissions, watermarking, and view-only modes. A VDR is a perfect solution for M&A due-diligence as well as other high-risk transactions.
VDR providers vary in terms of features, ease-of use, and cost. The best options for businesses are ones that can provide a centralized repository with flexible data permissions, granular activity reports, as well as customizable metadata. They should also provide security certificates and support that can help ensure the integrity in case of an accident.
The most popular providers are Datasite, RR Donnelley, and Intralinks. Each of them offers a comprehensive range of features and M&A tools However, their pricing varies. Digify, for example, provides a limited number of features that have a complex price structure.
