A virtual data room is an secure online repository for documents used in due diligence, M&A, and other sensitive transactions. Modern providers offer tools that are tailored to specific types of projects or industries, and go beyond simply document storage and sharing. These tools can increase internal transparency and speed up the management of documents. With numerous options and pricing structures that you can evaluate it can be difficult to determine the most appropriate option for your organization.
Compare how each provider will meet the specific project requirements. Find out the type of data you’ll be storing and then share. If your project involves a M&A transaction, you must find an organization that has the knowledge to prepare the data for due diligence and close the deal swiftly. If you have to exchange small and large files, ensure that the platform supports a variety of formats and sizes. Also, you should determine which operating systems are supported by the platform.
Examine the security features of the service provider to ensure they’re compliant with the industry’s requirements and any regulations specific to your industry. For instance, you can determine whether it offers virus scanners and firewalls, as well as other security tools. In addition, find out whether it offers detailed user and group permissions and other protections. You should also verify access restrictions that prevent printing, downloading, or copying, as well as the capability to remove remote access even when users have downloaded the documents.