A virtual data room (VDR) is an online safe space to store and share time-sensitive documents. Banks and other financial institutions make use of it to facilitate due diligence in M&A loans, loan syndications, licensing and venture capital deals. The VDR gives a central location where multiple parties can review documents and access them simultaneously. It also comes with the ability to control security in a granular manner. It also allows real-time collaboration in projects with complex workflows. It can be hosted in the cloud or on premises and can be integrated with existing systems for quick deployment.
Contrary to the basic file-sharing software, which can be great for basic use, but do not offer enough functionality for complex projects like due diligence, VDRs have robust features that guarantee security and allow processes to run smoothly. They can prevent costly misunderstandings and delays due to incorrect revisions and lost files by making sure that sensitive information is not shared by unauthorized users. They also can help avoid costly data breaches and compliance violations, by ensuring the central repository for all information.
Choose a service that has an affordable pricing structure that is flexible and a simple interface. You can pay for only the storage space you require with a per-storage option. Some vendors offer flat-rate options that do away with overage fees and provide a definite spending budget.
The most popular VDRs include the iDeals Firmex and Intralinks. iDeals offers an easy-to-use interface and powerful tools to facilitate the M&A process quicker and more convenient for all parties. Its e-signature and DocuSign integration allows you to save time and also provides unlimited users and storage for a low price. Its powerful analysis and automated reports give an insight into the activity, making sure that all parties understand what’s happening at any given moment.
