M&A transactions require sharing large amounts of information with a board portal variety of stakeholders. Virtual data rooms are an encrypted file sharing platform that simplifies due diligence procedures, increases effective collaboration, and reduces risks and costs for both parties. With advanced security features like multi-factor authentication, session timeouts, location restrictions, granular permissions for users and much more, the VDR enables simplified M&A document management and compliance.
A VDR is also a great way to share confidential documents without worrying about violating privacy or compliance regulations. For instance, a company may need to communicate with board members who do not use the same equipment. In these instances VDRs are a great option to relay important information via email, secure file-sharing and managed file transfer APIs.
VDR providers have a variety of pricing models, including per storage, page and user. The most appropriate option for your needs is based on the amount of data you’ll be storing, how many users you’ll need to add and the additional features you might want. The best option is to choose a vendor with a robust trial offer, so you can test the functionality of the software and see how it performs to your needs.
The configuration of a VDR should be intuitive and simple enough for a CFO as well as an entry-level accountant to understand. It should also offer an array of deployment options, and the option of a single sign-on for all projects. Lastly, it should offer support 24 hours a day.