How to Choose a Virtual Data Room

As the due diligence process for M&A transactions gets more complex, businesses are turning to virtual data rooms (VDRs) to provide a reliable and secure way to share and review documents. But how do you choose the best VDR to meet your business’s specific needs?

Begin by determining what you want to achieve. Then, narrow down a handful of VDR providers that meet your requirements. Check their websites and read testimonials. You should look for a interface that is modern and streamlined, offering both efficiency and simplicity.

Verify that the VDR is fully connected to your other tech tools once you’ve narrowed your options. A well-integrated platform will enable you to quickly switch from one application to another, speeding up your due diligence and other workflows.

Another thing to consider is whether the VDR is either a bottom-up or top-down filing system. Top-down filing systems design an orderly folder structure and subfolders to allow users to quickly navigate through files. This format is perfect for large projects and firms that need to organize their data according to department or stage of a project.

Be sure to look at the security features that each provider offers. The loss of data due to compromise is costly and puts thousands or even millions of people at risk. When shopping, avoid any providers that aren’t ISO 27001 compliant and feature two-factor authentication to reduce the theft of passwords, as in addition to digital watermarking features to prevent document replication. The top-of-the-line VDR providers also provide 24/7 customer support that is multilingual and can help you understand the features and functionality of their solution.