As the due diligence process for M&A transactions continues to become more complicated, companies are turning to virtual data rooms (VDRs) for an efficient and secure way to share and review documents. How do you pick the most appropriate VDR to meet your company’s particular requirements?
Begin by determining your goal. Focus on a few VDRs that meet your requirements. Check their websites and read reviews. Search for a website that is sleek and modern, offering both efficiency and simplicity.
Once you’ve narrowed down your options, make sure the VDR is fully integrated with other tools within your technology stack. A well-integrated platform will enable users to quickly switch between different applications and speed up your due diligence and other workflows.
Another factor to consider is whether the VDR offers either a bottom-up or top-down filing system. Top-down file systems use subfolders and folders with logical structure that allow users to navigate the files. This format is a great fit for larger projects and for companies that need to organize data by department or stage of the project.
Pay attention to the security options each provider offers. Data breaches can be costly and put thousands, if no millions of people at risk. When you shop, be wary of vendors that are not ISO 27001-compliant. They also do not provide two-factor authentication to prevent security against password theft as well as digital watermarking to prevent duplicated documents. The best VDR providers offer 24 hour customer service in all languages that can help you understand their features and capabilities.