The virtual data room (VDR) is an online, secure place to save sensitive corporate documents for due diligence, M&A, contract negotiations and other projects. VDRs unlike other file-sharing applications, are specifically designed to store large volumes of documents. They can be searched and organized with a clear, organized folder system. They also allow for compliance with industry standards, like ISO 27001 and GDPR for biotech and medical sectors.
Many advisers and investment bankers assume that all VDRs offer similar features. However there are significant differences in the capabilities and pricing structures. Before choosing a VDR provider ensure you know their pricing structure. For instance, whether they charge per page, based on the number of users, or based on the size of their storage and duration.
Find a user-friendly interface when you are looking at the virtual data room. This will lessen the learning curve for new team members. It should offer tutorials along with guides and support for onboarding. Check to see if the VDR can be customised to match your brand, and can seamlessly integrate with any other tools or software your team uses. In addition, ensure that the service provider has tools that allow collaboration like real-time editing, commenting and Q&A modules. This will save time and improve communication amongst your team members during the due diligence process. Also, verify if the company offers audit trails that give information on who accessed the document and when.
