VDR software allows companies to share business-critical data securely with third parties, such as lawyers, compliance auditors, and trusted advisors. In contrast to file sharing tools, VDR software is designed to safeguard business-sensitive information and ensure that no one will be able to alter, delete or intercept the contents of shared files. This makes it ideal for the M&A due diligence process, however, it is also suitable for Virtual Data Room Providers any situation where sensitive information has to be shared with potential investors, service providers or any other outside party.
When evaluating a virtual room be sure to look for these characteristics:
Security: VDRs have been designed to provide security that can resist malware attacks, hacks and other types of malicious behavior. Choose a provider that offers ISO secure methods including encryption and backups. A VDR should also permit users to set different access levels for different people and change these privileges quickly if moods shift during negotiations.
Document Management: A VDR that is good allows you to upload documents, arrange them into meaningful categories, and use search functions to find specific folders, and to detect partial or exact matches. A VDR should also contain advanced functions like OCR optical character recognition for PDFs as well as images, and filters that narrow down the search results.
Collaboration and Communication: Look out for a VDR system that includes built-in discussion capabilities as well as a chat feature that lets teams collaborate, and a messaging capabilities that break down communication gaps. In addition to that, a VDR should have an API that can be used to integrate it with other systems.
