A virtual dataroom (VDR) acts as an electronic repository for sensitive and critical information. It is used to facilitate the security of due diligence in corporate transactions. It also serves as a convenient platform for sharing documents with a variety of stakeholders.
The most frequent use of VDRs is during M&A transactions, where private documentation is exchanged between the two sides of an agreement. Financial records, tax documents and contracts, confidential information, and intellectual property are all included. These documents must be accessible and not be exposed to prying eyes.
When selecting a VDR make sure you choose one that has robust security features, including user-level access multifactor authentication access expiration, revocation, and mobile device management. It should also offer the ability to track documents and provide an audit trail. Also, make sure you have support that is available during business hours and can respond promptly to any issues or questions that might arise.
It is also important to consider how it is to upload and download large files sizes. Some vendors offer a drag-and drop feature that speeds the process. This is helpful for larger projects. Also, check how easy it is to access activity reports, which can help a user stay up-to-date on document activity.
A top-tier vendor also has a variety of communication and collaboration tools, such as a Q&A, comment sections or even live-chatting. This can help improve efficiency and workflow as well as increase efficiency of teams.