Data rooms can aid in streamlined transactions and protect sensitive data, as well as accelerate due diligence during M&As and capital raising. The dedicated virtual data rooms provide more robust security features than the standard file-sharing tools and can be highly customized to meet the specific needs of a business. However, some companies believe that they can save money by using free virtual data rooms instead. This is a risky idea, as the free data rooms are more vulnerable to theft and privacy breaches. They can be expensive or impossible to recover from.
To avoid costly mistakes and ensure the success of your VDR project, select a vendor that offers advanced features bundled in a cost-efficient package. For instance, a reliable VDR includes an automatic file index, as well as a dynamic watermark which adds the email address of the recipient to the document in real-time to stop screenshots. It also provides advanced expiry options as well as DRM to prevent unauthorized printing and sharing. It should also offer an easily customizable portal for partners and clients as well as an easy, intuitive graphic interface that is equally clear to both the CFO and the entry level accountant.
A good VDR should be compatible with a variety of operating systems and mobile devices. It should also come with powerful reporting capabilities that convert activity audit logs into useful reports. Visual analytics should be made available to ease and improve M&A and due diligence procedures. It should permit users to establish access permissions that align with the user’s specific role.