The thrills of working on a pact, be it mergers and acquisitions, joint ventures, fundraising, or IPOs with an intense and not exciting multi-document due diligence procedure. You have additional data to share and evaluate with the other group and even a reduced amount of time to perform it.
This is among the main causes why the VDRs (virtual data rooms), online data stores that allow several parties to share and store information securely, are very popular in recent years.
Although, with numerous virtual data room providers (and many cloud storage platform as well), it is significant to distinguish what a good VDR does before joining a provider. These are things to consider:
1. A VDR That is Easy to Use
Sounds clear right? However, several VDR suppliers complicate the software with functions you do not need and complicated processes. Request a sample of the virtual data room before you stick with it and make it easy for you and the settlement team to utilize.
2. A Price Structure Personalized to Your Offer
A VDR supplier generally charges for the number of megabytes (MB) of information it uses or the number of pages it stores. You must be flexible to sort out both, subject to the deal you are working on. In case the documents you store in a VDR are primarily text-based (for example, written reports or spreadsheets), it is better to pay for data MBs because the costs are lower.
If your papers contain a large number of images and graphic files (like a patent schematics), you will have to pay for the pages you save, because the size of the file will be much larger. Similarly, you must decide whether you will pay an indefinite number of individuals to access your VDR or pay for every user. Depending on the way you are staffing your offers, the best VDR supplier should be capable of expanding or reducing your requirements over time.
3. Advanced Support and Configuration
To get the best from your VDR and make sure everyone in the deal comprehends where everything is and how it functions, you ought to select a provider who can assist you configure and upload the documents.
However, this support should not stop here. Your provider must have a support service available 24/7, set to reply to any questions from your team, both on weekends and at night. Your deal does not stop to wait and neither do you.
4. A Secure VDR
The information shared in a transaction agreement is, of course, very sensitive, thus any VDR must be insensitive to a hacking attack. You must check to see if a vendor has third-party authorizations of SSAE 16, ISAE 3402, and ISO 27001, as this is a good measure of high-security standards.
It is also worth noticing where the Virtual Data Rooms servers are located, plus the vendor’s history and reputation.
5. Ability to Control Who Perceives What
With a good VDR, you can control individuals who can view a document, be it a large document folder or a single file in a big folder, while limiting what individuals could do with the documents.
The top VDR providers allow you to see what individuals have done and what they are doing on your VDR, keeping your information private. This comprises adding imprints to documents or limiting who reproduces them.
6. A Deal Room That Never Disappoints
Sometimes the technology fails, and in VDR’s case, a server can fail. However, the most trusted VDR vendors ought to have an additional server, preferably in a different section from the initial.
When selecting your VDR provider, ensure that is the situation and if so the second VDR server will continually replicate the data. It can be automatically activated and updated when the primary server goes down so you do not waste time on the offering.
7. A Provider That Gets It
You could not care less concerning VDRs, megabytes, or security certificates. You only need to quickly close your deal with a facility that works. Ensure your provider recognizes this or, better yet, has knowledge on your tableside. Their service would be better, they will do the heavy lifting and keep it simple.
This list of features is very definitive, but these things are the essential things to look for during VDR provider selection. Consider each feature and you will never regret.