Whether you are in the progress of an arduous and time-consuming deal or just need a secure space to store your documents without the burden of physical files, a virtual data room is the right software for you. Confidentiality is incredibly important when it comes to the success of major company deals as well as the accountability you build with your clients, so it’s vital that you as a business owner partner with a capable tool to ensure you maintain the utmost control of your data. If you are unfamiliar with virtual data rooms and what they can do for your business, this article will outline the basics and how to find the right provider for your needs.
What Is A VDR?
Data rooms have been around for decades, first as physical repositories where companies stored their documents for review during M&A deals, and slowly converted to digital storage in the early 2000s. The efficiency of a virtual data room lies with its ability to store and organize large volumes of documents during complex deals while also maintaining their security as you invite various parties onto the platform to review them. Unlike generic document sharing services, such a Google Drive, virtual data rooms offer an extra layer of protection and are accepted through the firewall of major financial institutions so that your transactions are able to run smoothly from beginning to end.
While VDRs are most commonly used during M&A for due diligence, they are also prominent tools with regards to fundraising, litigation and a variety of other industries that require the sharing and storing of large volumes of documents. A Virtual Data Room provider’s goal is to offer users the utmost control and organization during transactions that involve multiple parties and are susceptible to unwanted leaks or disclosure. Their necessity amongst these types of transactions as well as general corporate usage is constantly growing and improving the cyber security of numerous business, big or small.
Why Partner with a Virtual Data Room Provider?
As mentioned above, a virtual data room offers you and your business an unbridled level of security for all of your confidential information during long and complex deals. Considering the amount of users deals such as M&A require to view these documents, it is important to feel confident that your data is secure and will remain in your control at all times. This control is achieved through the variety of features and how easy an interface is to navigate when documents are constantly being shared and uploaded.
• Audits and reporting functionality allows an administrator to monitor activity within a data room, who is viewing what documents, and what they are using the information for
• Complex permission settings are implemented to ensure that you are in control of who views what and for how long, changing it whenever you want if you feel it is necessary
• Watermarks and disable print/download offer an administrator the decision of whether users can review documents outside of the data room or not, leaving an identifying watermark on the document if they do
• 256-bit encryption is implemented for data at rest and in transit so that information cannot be intercepted during any step of the process
• Various compliances that ensure your data remains out of the hands of unwanted third parties
• Multi-factor authentication so that you can be sure whoever enters the room is meant to be there
• Capable and efficient customer support team that offers assistance at any time so that you are sure you are using the VDR to its full potential and are not making any errors in the security settings
• Interface isn’t cluttered or bulked up for a higher price with unnecessary features that make it difficult to navigate for you and your invited users.
• Accessible from anywhere, at any time so that you are always in the know during your deal
How To Choose a Virtual Data Room?
Finding the right VDR for you is tricky if you are doing it on your own or without the right right advisor. A few simple ways to decide on a provider that you would want to work with for an extended period of time is by reading online reviews, customer testimonials, and giving a VDR you are interested in a test drive with a demo and free trial. A provider that is confident in their product will allow you to experience the service first hand so that you can make an accurate decision, guiding you along the way with excellent customer support when you need it.
Major company deals can be onerous and hectic without the right software, which is why an efficient virtual data room is vital for your projects. With the rapid evolution from physical to digital repositories, VDRs are the most prevalent and effective method of storing and sharing your confidential company data in the most secure and accountable way possible.