For business processes like M&A, capital raising, legal matters or restructuring, bankruptcy and other businesses must scrutinize a huge amount of information. This data could contain sensitive information that could be the risk of being stolen if got into the wrong hands. To prevent this it is recommended that a virtual data room is used to secure share documents and files with the right parties, while keeping compliance.
It’s vital that your dataroom’s virtual counterpart provides you with the tools needed to work from anywhere and safely access data. You’ll want a user-friendly interface, in addition to advanced security features. The most effective VDRs come with a simple, basic interface that requires minimal training.
Check for these features when evaluating a data room:
Folder Templates
The use of folder templates can make it easier to organize the contents of your VDR. You can build a default structure for folders and save time and effort by not having to start from the beginning. Additionally, these templates ensure that all relevant documentation is included in the due diligence process. Select a vendor that offers flexible upload options. Ideally, you should be able to upload several large files at the same time. This will help you save time and effort while the preparation for an M&A transaction.
Document Restrictions
A good virtual data room will offer a variety of restrictions on specific documents. These can range from limiting access to specific domains or permitting downloads only on specific platforms. You can also restrict the possibility of recipients printing or edit documents. Some providers provide dynamic watermarks that show the date or code of access.
Security Features
To ensure the privacy of your personal data, a data room should be equipped with AES encryption of 256 bits for storage and transmission. In addition, the VDR should permit administrators to deny access at a moment’s notice and should also have a backup in place to ensure that your data isn’t lost. A reliable VDR can also detect attempts made by users who aren’t authorized to access your data. It will monitor the IP address, the type of device and the location of users that access the system, and will send out email notifications in the event of suspicious activity being detected.
Finally, a good VDR will have the ability to have a Q&A feature which lets administrators efficiently manage questions and answers between participants. This will eliminate unnecessary steps and help save time spent sending emails.
Before anyone is able to access data from a VDR they must sign an agreement on confidentiality or non-disclosure. This will ensure they are not sharing confidential or proprietary information, and also reinforce the importance privacy and security. A good virtual dataroom will also have an extensive set of reports and analytics. This will provide administrators with the information they require to make informed business decisions.