How to Choose a Virtual Data Room Provider

Virtual Data Rooms are online databases that are used to save and distribute documents. It’s commonly used during due diligence procedures in M&A transactions such as loan syndication, venture capital and private equity deals. VDRs are an effective, secure method to share sensitive information with third-party companies.

When choosing a VDR provider, choose one that provides multiple pricing options. Some charge a flat monthly cost while others employ different models, such as per storage, per page or per user. Some also offer unlimited plans that permit users to upload and access as the Non-Profit Boards amount of data they want.

Search for a partner with robust security features like antivirus, multifactor authentication, as well as malware scanning. Advanced encryption is a good feature to look for. Additionally you should be capable of setting permissions down to the level of a file folder. This allows you to restrict access to team members, project or business unit.

Finally, consider the ease of use. A great VDR should have a simple setup that is equally accessible to the C-suite as well an accountants with a basic education. Look for customizable UI color schemes and at-a glance reporting that can be customized to highlight important data.

During the M&A phase, investment bankers and advisors share piles of documentation with investors and regulators. The right VDR solution will allow them to manage document management, simplify tasks and automate processes from a single location. This improves communication between teams, and reduces risk. It also improves efficiency and transparency during due diligence.