In order to carry out the most crucial business transactions, an enormous amount of data must be reviewed and quickly shared. The sensitive information can end up destroying an arrangement or cost a company valuable revenue and market share if it is placed in the wrong hands. Therefore, it is essential to ensure that only the correct people have access to the information at all times. This is the reason a virtual data space comes in handy. A virtual data room (VDR) can help streamline due diligence and M&A processes, while protecting confidential files.
A VDR is an online repository that holds essential files in a secure way and allows restricted access to internal or external stakeholders. It can also help reduce the risk of file sharing that is not authorized by enabling security-first features such as multifactor authentication session-timeouts and document level permissions, watermarking and view-only modes. A VDR is a great solution for M&A due-diligence and other high-stakes transactions.
VDR providers differ in price, ease-of-use, and features. Businesses should select a VDR that offers a central repository with flexible permissions for data, detailed activity reports, and custom metadata. They should also provide support and security certifications that will ensure the security of documents in case of an incident.
The most popular providers are Datasite, RR Donnelley, and Intralinks. Each provider offers a robust range of features and M&A tools however their pricing varies. In the lower tier there are companies like Digify which offer a limited functionality with a complicated pricing structure.