A virtual data room is an online platform that enables the secure and efficient exchange of information with third party. It is usually used in the M&A process, when buyers look over large volumes of documentation, but it can be used in any situation that requires the secure access of information by third parties.
When deciding on the right VDR provider, take into account the needs of your company. VDRs are extensively used in specific industries, like M&A, due-diligence, intellectual property protection, and biotech licensing. Even small companies benefit from the ability to securely share files and documents with potential investors, board comms and many others.
The cost structure is crucial when choosing the right VDR. Choose a provider that offers various pricing models that range from per-storage and per-page to flat charges and unlimited usage. These pricing models are similar to those of cell phone plans and internet plans. This allows you to be aware of the exact amount you’re paying.
The best VDRs have user-friendly, easy-to-use interfaces that can be used by the CFO and the entry-level accountant. They should also be secure enough to meet your company’s requirements and provide audit logs that detail what users are doing inside the data room.
It’s a good idea test a few VDRs before you decide on one for your business. This will help you evaluate features and ensure that you can get the most of the software without spending money on extras.