A virtual dataroom (VDR) is an electronic repository for critical and sensitive information. It can be used to help secure due diligence during corporate transactions and provide a convenient platform for sharing documents with a range of stakeholders.
VDRs are typically used in M&A transactions, where private documents are exchanged between the two parties. This includes financial records such as contracts, tax documents, confidential information, as well as intellectual property. These records should be accessible and not be exposed to prying eyes.
When choosing when choosing a VDR select one with strong security features, such as user-level access rights multifactor authentication access expiration, revocation and mobile device management. It should also include the ability to track documents and provide an audit trail. Check that the vendor is accessible during normal working hours to address any questions or concerns.
It is also important to take into consideration how easy it is for you to upload and download large file sizes. Some vendors provide a drag-and drop feature, which makes the process faster and can be useful for larger projects. Also, look into how easy it is to access activity reports which can help the user stay on top of document activity.
A top-tier vendor also has a variety of tools for collaboration and communication like a Q&A, comment section, or even live-chat. This can help improve efficiency and workflow, and also increase team efficiency.