The most critical business transactions require a large amount of information to be reviewed and shared in a timely manner. When this sensitive information falls into the wrong hands, it can end up causing a loss and cost a company revenue or market share. It is crucial to make sure that only the correct people have access to the information at all times. This is where a virtual data room can be useful. A virtual data room (VDR) can simplify due diligence and M&A processes, while also protecting confidential files.
A VDR is an online repository that stores business-critical files securely and allows controlled access to internal or external stakeholders. It also helps reduce the risk of file sharing that isn’t authorized by offering security-first features such as multi-factor authentication session timeouts, document-level permissions, watermarking, view only modes, screenshot blocking, and more detailed activity reports. A VDR is an ideal solution for M&A due diligence as well as other high-risk deals.
VDR providers differ in price, ease-of-use, and company website features. The best options for businesses are those that offer an integrated repository that allows for flexible data permissions, granular activity reports, and custom metadata. They should also offer support and security certificates that can help protect the integrity in the event incidental damage.
The most popular providers are Datasite, RR Donnelley, and Intralinks. Each of them offers a comprehensive array of features and M&A tools, but their pricing varies. Digify, for example, provides a limited number of features with a complex price structure.