VDR software allows companies to share important business data with external parties like lawyers and compliance auditors. Contrary to file sharing tools VDR software is designed to safeguard sensitive business information and ensure that no one has the ability to modify, delete or alter the content of shared files. This makes it perfect for the M&A due diligence process, but also for any scenario where sensitive information needs to be shared with potential investors, service providers or other outside parties.
When evaluating a virtual data room, be sure to look for the following qualities:
Security: VDRs are made to provide a secure environment that will resist malware attacks, hacks and other types of malicious behavior. Find a service that can provide ISO-compliant security including backups and encryption. Additionally, a VDR should permit users to define access levels for different groups of users and to change access privileges swiftly if the mood changes during negotiations.
Document Management: A quality VDR will allow users to upload documents and organize them into meaningful categories with search features that can detect exact or partial matches and identify specific folders. A VDR should also incorporate advanced functions like OCR, optical character recognition for PDFs as well as images and filters to narrow down search results.
Collaboration and Communication: Search out for a VDR which has built-in discussion features Virtual Data Room Providers such as a chat function that allows teams to work together, as well as messaging functionality that eliminates communication gaps. A VDR should also come with an API that allows it to be integrated with other systems.