A virtual data room is an online platform that allows for the safe and efficient exchange of data with third-party parties. It is commonly utilized during the M&A phase, where buyers are reviewing large volumes documents, but it can be used for any scenario where secure access to data is required by third parties.
Be aware of your company’s requirements when deciding on the right VDR. VDRs are used extensively in specific industries, such as M&A due-diligence processes, intellectual property protection, and biotech licensing. However, even small businesses benefit from the ability to safely share files and documents with potential investors, board comms and many others.
Cost structures are also important when choosing the best VDR provider. Look for providers that offer a variety of pricing models, from per-storage and per-page to flat fees and unlimited usage. These pricing models are similar to those of cell phone plans and internet plans. This lets you know exactly what you’re paying.
The best VDRs have user-friendly interfaces that are simple to use and are suitable for both the CFO and the entry-level accountant. Furthermore, they must be secure enough to meet the needs of your industry and offer audit logs to show what users are doing inside the data room.
It’s a good idea to test a few VDRs before choosing one for your business. This will help you assess the features and ensure you get the most value of the software without spending a lot of money on additional features.