How to Conduct a Virtual Data Room Review
The virtual data room (VDR) is an online safe place to archive sensitive corporate documents to be used for due diligence, M&A, contract negotiations and other projects. VDRs are not like other file-sharing applications, are specifically designed to store large volumes of documents. They can be searched and organized easily with a clear folder system. They also help with compliance with industry regulations such as ISO 27001, GDPR and HIPAA for biotech and medical industries.
While many advisors and investment bankers may believe that all VDR providers have the same features, there are actually significant differences in the capabilities offered and pricing structures. Make sure you are aware of the pricing structure prior to deciding on the right provider, for example, whether they charge by page, the number of users, storage size or duration of the project to avoid unexpected costs or overages.
When conducting the virtual data room review, be sure to look for an user-friendly interface that will help ease the learning curve for new team members. Make sure it offers tutorials, guides and support to aid in onboarding. Also, make sure that the VDR is able to be customized to match your branding and integrate seamlessly with other tools and software that your team utilizes. Check if the VDR provider offers features that promote collaboration like real-time commenting and editing, as well as Q&A modules. This will help you save time and enhance communication among your team members during the due diligence process. Additionally, consider whether the provider has built-in audit trails that provide you with information on who has accessed which document and when.