Businesses that are preparing to close or sell an M&A deal are often required to disclose sensitive financial information including vendor contracts intellectual property files, due diligence reports with potential buyers. A VDR streamlines the process and protects confidential documents safe under lock and key.
As opposed to file-sharing apps that are available for consumers, VDRs include granular document permissions that regulate whether users are able to view, download, edit or print documents and folders. They also offer advanced security features such as encryption and multi-factor authentication, remote shredding, secure printing capabilities and document watermarking.
You can also set a minimum amount of access privileges for any user group. For instance you can limit access to a certain investor group or BD team. This helps to avoid misunderstandings, and ensures all virtual data rooms unlocking your businesss full potential due diligence questions are answered and speeds up the process. Find a vendor with intuitive tools that allow you to easily assign and manage these granular permissions.
Finally, look for the VDR with an interpretable file system that makes it easy for users to locate the information they require. This will stop the VDR becoming clogged up with dated versions of documents and irrelevant information. This will make it easier to avoid sending confidential information to investors that isn’t required for their due diligence. For instance an agenda that was previously used for meetings with the board or office leases for small spaces.
Choose a provider that allows you to select the best monthly plan for your business. Pricing is based on the capacity of storage, the number of users, as well as the features of the VDR.
