For business processes like M&A capital raising, legal matters, or bankruptcy and restructuring businesses must scrutinize a vast amount of information. This information may contain sensitive data that could pose danger if was misused. To avoid this happening, a virtual dataroom can be used to secure and legally share documents and files with the appropriate parties.
It’s essential that your virtual dataroom provide you with the tools to work from any location and access securely data. Alongside the latest security features, you’ll need an interface that is easy to use by everyone. The most effective VDRs come with a simple and intuitive interface that requires minimal training.
Consider the following aspects when evaluating a virtual information room:
Folder Templates
Having templates for folders makes it easier to organize the contents of your VDR. They let you create an initial folder structure that can save time and energy, by removing the necessity of creating one from scratch. These templates also help to ensure that all relevant documents are included in the due diligence procedure. It is also important to select an option that has various upload options. In the ideal scenario, you will be able upload several large files simultaneously. This will save you lots of time and effort while preparing for a M&A transaction.
Document Restrictions
A reliable virtual dataroom will allow you to set different restrictions for each document. These restrictions could vary from restricting access to certain domains to only allowing downloads on specific platforms. You can also decide whether recipients are allowed to print or modify documents. Some providers provide dynamic watermarks that show the date or the code that grants access.
Security Features
A virtual data room should have 256-bit AES encryption for storage and transmission to ensure your privacy. The VDR should also allow administrators to debar access at any time, and keep a backup so that your data is not lost. A reliable VDR will also be able to detect attempts by unauthorised users to access your data. It will monitor the IP address, type of device and the location of users who access the system, and send email notifications when suspicious activity is detected.
A great VDR should have an ability for Q&A that allows administrators to effectively manage questions and answers between participants. This will eliminate unnecessary steps and save time otherwise spent sending emails.
Before individuals are able to view data in a VDR they must agree to a non-disclosure or confidentiality agreement. This will ensure that they’re not sharing proprietary or confidential information, and will emphasize the importance of security and privacy during the process. A well-designed virtual dataroom will also include a numerous reports and analytics. This will give administrators the information they require to make informed decisions for their organization.
