A VDR is a virtual data storage area that allows documents to be shared between buyers and sellers. It is an essential tool for M&A deals as well as private equity companies and life science businesses that require sharing sensitive information with customers or partners.
The most effective VDRs provide a range of features that can simplify the M&A and improve the odds of closing deals. For instance, they allow people to read documents at the same time – instead of switching between piles of paper – and are accessible via laptops, desktop computers or mobile devices. This can reduce the time required to finish due diligence, and also save both time and money.
Consider how your team operates and how you can benefit from additional support when you are shopping for an VDR. For instance, if you’re looking for a VDR that supports e-Signature make sure you choose one that provides an integrated solution. Sending draft contracts via email or using a third-party eSignature service increases the risk of the process.
Search for a VDR with simple tools to manage document access searching, logging, and search. Make sure that the software is able to handle a wide range of files, provides rapid browsing speeds and lets you access documents from multiple devices. Make sure you choose a vendor with a track record of uptime and excellent customer service. They should have a team that is fluent in your language and is able to quickly respond to any questions or problems.