A virtual dataroom (VDR) can be an online repository that holds documents and other files. It can be used to share sensitive business information, such as during mergers and acquisitions. Due diligence processes, fundraising rounds and financial audits are also common. VDRs provide more security and control over traditional physical storage while reducing costs.

When selecting a VDR pick one that comes with a complete and extensive set of features. This will satisfy your company’s needs. For instance, you may want to think about whether the platform complies with ISO 27081 standards for data security or is equipped with robust malware and virus scanning with an uptime of more than 99.9 continue reading this percent and multifactor authentication to guarantee that your data is protected. Also, look for customisation options like color-coding for easy identification of specific documents during meetings at the internal level and at-a-glance reporting that gives C-suite executives the overview they require.

A VDR is most commonly used in M&A transactions, when potential buyers go through a lot of documents for the companies that are being sold. M&A virtual datarooms enable an efficient due diligence process, and reduce risk because they restrict access to confidential information only to those who need to see it. When negotiating an M&A deal users also benefit from the VDR’s Q&A section and comments. This boosts productivity and speeds decision-making. Additionally, M&A VDRs enable you to have complete and thorough audit trails, which are essential for M&A due diligence.