To carry out the most important business transactions, a large amount of data must be reviewed and quickly shared. If this sensitive data falls into the wrong hands, it can end up causing a loss and cost a business revenue or market share. It is therefore crucial to ensure that only the correct individuals have access to the information at all times. This is where a virtual data room comes in handy. A virtual data room (VDR) can help streamline due diligence and M&A processes while protecting confidential Website data.
A VDR is an online repository which stores essential files in a secure way and allows controlled access to internal or external stakeholders. It can also reduce the risk of file sharing that is not authorized by providing security-first functions like multifactor authentication, session-timeouts for documents, document level permissions, watermarking and view-only modes. A VDR is a great solution for M&A due-diligence and other high-stakes transactions.
VDR providers differ in terms of cost, ease-of-use, and features. Businesses should select the VDR that provides an integrated repository that can be customized with permissions for data, thorough activity reports, and customizable metadata. They should also offer support and security certificates which help protect the integrity in the event incidental damage.
The most well-known providers are Datasite, RR Donnelley, and Intralinks. Each provider offers a robust collection of features as well as specialized M&A tools however their pricing is different. Digify is one example. It offers a few features that have a complex price structure.