Virtual data rooms provide a secure platform to house and manage confidential documents during transactions. All VDR providers provide the same basic capabilities however, certain providers specialize in specific industries or transactions. In addition, they usually offer a range of additional features that make their software more efficient and user-friendly.
VDRs can also assist in the process of obtaining funding by making financial information about a company available to potential investors on a view-only basis, which helps increase the probability that a new venture will succeed. They are especially useful during due diligence, when every detail about a business has to be reviewed.
When selecting the right VDR for M&A teams must consider the amount of storage they’ll require as well as the amount of data each person can access within the digital workspace. They should also examine the permissions granted to the VDR, which include the ability to restrict certain files to «view-only» and specific roles.
Other features to look out for in a VDR include drag-and drop uploading, auto indexing and document numbering, an optical character recognition software that can perform a full-text search across all uploaded files, dynamic watermarks which appear on top of every file when it’s viewed, downloaded or printed and the option to create custom colors and logos. Some VDRs require users to sign a nondisclosure contract before downloading any information. This provides an additional layer of security.
The best VDR firms have multiple security certifications like ISO 27001, SOC 1/2/3, GDPR and HIPAA. In addition, they should allow customers to set their own security levels and create the fence view that blocks out specific sections of the document in order to prevent screenshotting. They should also offer support via live chat, email and telephone.
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