A virtual dataroom (VDR) is an online repository that holds documents and other files. It is used to securely share sensitive business data, for instance, during mergers and acquisitions. Due diligence processes including fundraising rounds, due diligence and financial audits are common. VDRs offer greater security and control than traditional physical storage, while also reducing costs.

When choosing a VDR select one with a broad and extensive set of features. This will satisfy the needs of your business. For example, you may think about whether the platform complies with ISO 27081 standards for data protection or https://dataroomsystems.com/virtual-data-room-comparison-for-needs-of-potential-investors/ has robust malware and virus scanning and uptime that exceeds 99.9%, and multifactor authentication to ensure that your uploaded data is safe. Consider features that allow customization such as color-coding features to help you identify documents in meetings at a glance reporting that provides C-suite executives with the high-level overview required.

The most common use of the VDR is during M&A deals in which potential buyers go through extensive documents for the companies being sold. M&A virtual data rooms enable more efficient due diligence process, and also reduce risk by restricting access to private information to only the individuals who are required to see it. In an M&A transaction the users also benefit from the ability to work effectively through a VDR’s question and answer and comments sections. This increases efficiency and speeds the process of making decisions. Moreover, M&A VDRs enable you to keep complete and thorough audit trails, which are essential for M&A due diligence.