Virtual data room commonly referred to as VDR is a series of proprietary extranets that provides online repository of data. Nowadays, most businesses use secure VDR to share vital information with external partners and customers in a secure online platform. Virtual data rooms have made it possible for one or more parties to share critical documents that are relevant to a particular setting by relevant users. Through the use of VDR, important documents are stored safely in electronic format on a central server where they can be retrieved easily via the internet. Virtual data rooms are secure and confidential virtual meeting rooms where lawyers, accountants, buyers and other professional sit down and review sensitive documents. VDRs can be used in the facilitation of due diligence process in M&A transaction, private equity, loan syndication and transaction of venture capital. Initially, virtual data rooms were only used by lawyers to discuss sensitive issues with clients. However, things have changed and nowadays, VDRs are widely used by many professionals because they are highly secure, cost effective and efficient.
Managing mergers or negotiating contracts is not easy. The process becomes even more complicated if you have so many documents to review and changes happening every time during the bidding process. A Virtual Data Room helps to streamline the due diligence process by moving critical documents and negotiations out of insecure email to a secure VDR with box. The box provides an efficient central workspace where authorized parties can easily create, upload view and even search any documents that has been stored. In addition to that, involved parties can also share highly confidential documents with password protected links. You can also set password expiration dates or delete shared links so as to have more control on who is accessing what. VDR also enables businesses to always stay one step ahead of their competitors. This is because it enables easy audit of file usage and user activity and gives a detailed report that could enable the businesses to gain greater visibility of their potential buyers and even predict their future behavior.
The best VDR to choose
A virtual data room is supposed to be a place where people view or share confidential information. As a result, it needs to be secure so that only authorized persons get to access information. It is therefore very important to choose a virtual data room that has already been tried and tested by professionals like bankers, lawyer, auditors and top managers of big corporations across the globe. So whether you are looking for VDR to conduct attractive private or M&A deal, board communication, licensing of medical breakthrough, clinical studies among many others, it is crucial that you choose a provider who will deliver top services so that sensitive information shared don’t get to the hands of unauthorized persons.
From our discussion so far, it is clear that there are many benefits of switching to virtual data room. Unfortunately, increase in demand for this service had led to mushrooming of many companies all of which claim to provide quality VDR services. However, the truth is that some providers are only interested to cash in from inspecting clients as opposed to giving them quality services. If you want to be on safe side, you need to be very careful when choosing a VDR provider. In this section, we are going to give you vital tips on features to consider when choosing a VDR provider.
We are living in the age where online piracy and hackers have become more aggressive. As a result, the security of your documents and information should be your main priority. The level of data security that a data provider gives should be able to handle all security threats that your industry poses. When considering this factor, don’t just look at the ability of the provider to protect your data from hacking, you should also consider important infrastructure security factors such as firewalls, safety of their servers, early detection of intruder and virus scanning. The security of the VDR is as important as people who will have the authority to access the data.
This is also another important factor that many people usually overlook. Just the way various VDR providers offer varying services, their pricing structure also differs. The provider needs to clarify exactly what is included in the package that you choose. Important things that you need to pay close attention to include:
· If the cost of uploading your data on the server differs depending on the cost
· If the cost differs depending on technical support required
· If cost differs if you need overtime and weekend access.
3. Customer support
The quality of customer support that providers give should also dictate whether you should choose the firm or not. When using virtual data room, you are likely to encounter technical problems now and then. It is therefore very important to choose a provider who offers quality customer care support. The provider should have team of well trained, informed and friendly staff who are always ready to listen to you and respond to your issues or queries promptly. It is therefore very important to check account management, technical support as well as products development services that the provider offers.
A good virtual data room is one that gives you the flexibility to do things the way you want. For instance, the provider should give you a platform that can be accessed via a desktop or mobile device. It should also be flexible enough to be deployed on cloud based or premise depending on individual needs of your business.
5. Ease of use
User experience is a very important factor to consider. The provider that you choose should provide a virtual data room that has simple but efficient user interface that is easy to use. Don’t forget to ask if you will be required to undertake some kind of training before you start using the platform. Experts recommend that you choose a provider who offers virtual data room services that don’t require complex training before you start using it. The interface should be simple but efficient.
In conclusion, whether virtual data room is used in conjunction with physical data room or as a stand-alone tool, there is no doubt that VDR will help expand the ability of the company to share sensitive information with other parties in a secure platform. The tips provided below will help you find the right provider to who will give you quality and reliable services.