A virtual data room (VDR) is a cloud-based repository of documents and other data files that is used to securely share sensitive information during complex business transactions, like mergers and acquisitions and due diligence procedures such as financial audits, fundraising rounds, and legal proceedings. VDRs provide more security and control over traditional physical storage, while reducing costs.

When selecting a VDR select one with a broad and robust set of features. This will satisfy your company’s needs. For instance, you may be interested in determining if the platform is compliant with ISO 27081 standards for data protection or offers strong malware and virus scanning, uptime that exceeds 99.9 percent and multifactor authentication to ensure that your data is protected. Similarly, look for customization options, such as color-coding, to quickly identify certain documents during meetings at the internal level and at-a-glance reports that give executives from the C-suite with the information they need.

The most popular use for the VDR is during M&A deals, where potential buyers review extensive documentation of the companies that are being sold. M&A virtual data rooms facilitate a more efficient due diligence process and lower risk by restricting access to private information dataroomsystems.com to only the parties required to view it. During an M&A deal users can also benefit from the VDR’s FAQ section and comments. This boosts productivity and speeds up the process of making decisions. Furthermore, M&A VDRs enable you to have complete and comprehensive audit trails, which are essential for M&A due diligence.