Data rooms can speed up the due diligence process during M&A and capital raising, streamline business transactions, and secure sensitive information. Virtual data rooms that are dedicated to specific purposes are more secure than general file sharing tools and can be tailored to meet specific business demands. Some companies believe they can save money by using free virtual data room services instead. This is a false idea, as the free data rooms are more prone to unauthorized access and privacy breaches. They can be expensive or impossible to recover from.
Choose a vendor that provides advanced features and a price-effective package to avoid costly mistakes. A good VDR, for example, has an automatic index of files, as well as dynamic watermarks that add the recipient’s email address in real-time on the document to prevent screenshots. It also has advanced expiry options and DRM to prevent unauthorized printing and sharing. It should also offer an adjustable client portal, client/partner portal, and a simple yet intuitive user interface that’s equally clear for the accountant at the entry level and CFO.
A high-quality VDR should be compatible with a variety of operating systems and mobile devices. It should also feature robust reporting capabilities that can transform the audit logs of activity into useful reports. It should also include visual analytics that ease and enhance due diligence and M&A processes. It will also allow users to set access rights that align with each user job.