technology diligence expertise

Virtual Data Room is an online repository that’s used for the storage and distribution of documents. It is often used in the due diligence process in M&A transactions such as loan syndication, venture capital and private equity deals. VDRs are secure, safe ways to communicate sensitive information to third parties.

When selecting a VDR provider, choose one that offers multiple pricing options. Some VDR providers charge a flat amount per month, whereas other charge per page or storage. Certain plans provide unlimited data access and uploading users to access as much information as they like.

Find a company that offers a robust security feature including antivirus, multifactor authentication and malware scanning. Advanced encryption is also an option to look for. Additionally you should be capable of setting permissions down to the level of a file folder. This gives you the flexibility to limit access according to team members, project participants or even a business unit.

Finally, consider the ease of accessibility. A good VDR is one that has an easy configuration, which is accessible to both the C-suite as well as accountants with a basic education. Look for a customizable UI color schemes and at-a glance reporting that can be tailored to highlight important information.

During the M&A stage advisers and investment bankers share piles and piles of documents with regulators and investors. The right VDR solution enables them to manage document management, simplify tasks and automate processes in one central location. This decreases risk and boosts the effectiveness of communication across teams. Due diligence is also more effective and transparent.