VDR software allows businesses to share confidential business information securely with third individuals, like lawyers, compliance auditors and trusted advisors. VDR software, unlike other file sharing tools, is designed to protect sensitive business data and ensure that no one alters or delete the contents of shared documents. This makes VDR software ideal for M&A due-diligence and also in any situation where sensitive information needs to be shared with outside parties, like investors, service providers, or any other interested parties.
When evaluating a virtual room Look for these characteristics:
Security: VDRs offer secure environments that can withstand hacks and malware attacks. Look for a service that offers ISO-compliant security, including encryption and backups. In addition, VDRs must be ISO compliant. VDR should permit users to set access levels for different groups of users and alter those privileges quickly if the mood shifts during negotiations.
Document Management: A M&A Deals VDR that is well-designed allows you to upload your documents, organize them into meaningful categories and use search functions to find specific folders and identify exact or partial matches. A VDR should also contain advanced functions like OCR, optical character recognition for PDFs and images, and filters that limit search results.
Collaboration and Communication: Look out for a VDR that comes with built-in discussion tools such as a chat function that allows teams to collaborate, and a messaging functionality that eliminates communication gaps. A VDR should also include an API to allow it to be connected with other systems.