When you’re choosing a virtual data room (VDR) for any due diligence, collaboration or storage project there are a myriad of types of VDR solutions on the market. It is essential to choose the right one in line with your needs. You want your files to be accessible and easily accessible, able to be shared and downloaded safely and that your information remains private.
Due Diligence
Due diligence is among the most frequently used uses for a virtual dataroom during M&A transactions. This involves sharing confidential data between two or more parties, including financial documents and legal records. A VDR allows buyers and sellers to conduct due diligence in a secure well-organized and controlled manner. During this stage, it is important to keep track of what information has been access by whom and to ensure there are no security breaches or leaks of sensitive information. Screenshot and watermarking protection can be helpful in preventing this during the due diligence stage.
Preparation
A preparation VDR is a great way to organize your team before a full due diligence exercise starts. It allows you to upload documents and information early to get everything ready to go when third parties are invited to join, helping to create some important process efficiencies along the way. The most effective preparation virtual data rooms provide document permissions for documents that can be modified based on role, folder and even document and file level to ensure that only the information you need is available.