Types of Data Rooms
If you’re considering a virtual data room (VDR) for any due diligence, collaboration or storage project There are a variety of types of VDR solutions on the market. Finding the best solution to meet your needs is vital and you must ensure that your files are easily accessible, able to be shared and downloaded with security, and that the information is kept private at all times.
Due Diligence
Due diligence is one of the most common uses for a virtual dataroom during M&A transactions. This involves sharing sensitive information between two or more parties such as financial records, legal documents and even employee details. A VDR lets buyers and sellers to conduct due diligence in a structured safe and controlled manner. During this stage it is crucial to keep track of the information that was taken into account and by whom to ensure that there aren’t security breaches or leaks of sensitive information. Features such as watermarking and screen-save prevention can stop this from occurring during the due diligence process.
Preparation
A pre-planned VDR is a great way to organize your team before a full due diligence exercise starts. This allows you to upload documents and other data early in order to have everything ready for when third parties are invited as well as allowing for significant process efficiencies along way. The most effective virtual data storage spaces for preparation let you customize document permissions according to roles, folders and even files and documents. This ensures that only the data you require is available.
