The virtual dataroom (VDR) is a helpful tool to share, store and/or analyzing information by multiple parties. However, some tasks require something more. Due diligence in M&A requires a solution that is more than just storage space that is safe for documents. It must also provide additional tools to collaborate and manage projects. This type of VDR solution is sometimes referred as a lifecycle-management solution. Certain providers provide solutions that are designed to help all aspects of the M&A process, such as due diligence, NDAs and expiry of documents.
When deciding on a software vendor the first thing to think about is the type of documents and files that you will be uploading or reviewing, or sharing. It’s also important to determine the features you’ll need, including security options like dynamic watermarking to protect against illegal copying documents, document encryption remote access revocation, even after downloading, and the ability to create folders for limiting access or allow.
Cost is another aspect to consider. Some data rooms charge per page, which can get expensive in the event that you share numerous documents. In the ideal scenario, you’ll find the service that gives you the opportunity to try the software before signing up to a plan.
You’ll also want to ensure that the provider you choose has a robust audit trail that tracks every single user’s actions. This will let you track the amount of time each user spent on each document, as well as the location they clicked on the document. Some providers will even provide reports by groups of my explanation users, or different charts to help you understand the statistics.