As the due diligence process for M&A transactions gets more complex, businesses are turning to virtual data rooms (VDRs) to provide a reliable, secure way to share and review documents. What are the best ways to choose the right VDR for your business?
Start by identifying your goals. Choose a few VDRs that meet your needs. Check their websites and read user testimonials. Find a user interface that is sleek and modern, offering both efficiency and simplicity.
Once you’ve narrowed down your options, check that the VDR will fully integrate with the other tools in your technology stack. A well-integrated platform can allow you to swiftly switch between different applications which will speed the process of due diligence and other workflows.
Another consideration is whether VDR provides either a bottom-up or top-down filing system. Top-down filing systems employ subfolders and folders with logical structure that help users navigate files. This structure is a good option for larger projects and companies that have to organize data according to department or by project stage.
Pay attention to the security features that each provider provides. The loss of data due to compromise can be costly and puts thousands as well as millions of individuals at risk. While shopping, be sure to eliminate any vendor that isn’t ISO 27001 compliant and feature two-factor authentication to reduce the theft of passwords as well as digital watermarking capabilities to avoid document replication. The best-in-class VDR providers also provide 24 hour customer support that is multilingual and can assist you to get the most out of the features and capabilities of their solution.