For business processes such as M&A, capital raising, legal issues or restructuring, bankruptcy and other companies must review a huge amount of information. However, that information could contain sensitive data, which poses the risk of being stolen if it falls into the wrong hands. To protect against this it is recommended that a virtual data room is used to safely share documents and files with the appropriate parties while maintaining the compliance.
It’s crucial that your dataroom’s virtual counterpart provides you with the ability to work from any location and access securely data. Alongside the latest security features, you need an interface that is easy for everyone to use. The best VDRs provide a simple, user-friendly interface that requires little training.
Check for these features when you evaluate a virtual data room:
Folder Templates
It is simpler to organize your VDR contents by using folder templates. You can create an initial structure for folders, reducing time and effort by not having to start from scratch. These templates also allow you to ensure that all relevant documents are included in the due diligence process. Choose a vendor with flexible upload options. You should be able to upload several large files at the same time. This will help you save a lot of time and effort while preparing for a M&A transaction.
Document Restrictions
A good virtual dataroom should allow you to set distinct restrictions for each document. These restrictions vary from restricting access to specific domains m&a data room to restricting downloads to specific platforms. You can even control the capability of recipients to print or edit documents. Some providers even offer dynamic watermarks that display the date of access as well as a unique code for tracking users.
Security Features
A virtual data room should have 256-bit AES encryption for both storage and transmission to protect your privacy. The VDR should also allow administrators to debar access at anytime, and should have a backup to ensure that your data isn’t lost. A good VDR can also detect attempts by unauthorised users to access your data. It will track IP addresses, types of devices and the location of users who are logged into the system. It will send emails when suspicious activity is discovered.
A good VDR will include a Q&A feature that allows administrators to efficiently manage questions and responses among participants. This can help eliminate redundant processes and reduce time spent on sending emails.
Before individuals can view data in the VDR the user must agree to a confidentiality or non-disclosure agreement. This will ensure that they are not sharing confidential or proprietary data and will highlight the importance of privacy and security in the process. A well-designed virtual dataroom will also have a comprehensive set of reports and analytics. This will provide administrators with the information they require to make informed business decisions.