A virtual data room is an online, secure repository for private records usually used during the due diligence phase of an enterprise transaction. With the advancement of technology and the increasing use of remote working virtual data rooms are being utilized throughout the entire lifecycle of a transaction, as well as other corporate events like fundraising, divestitures and restructuring of businesses.
The top online VDRs provide security that is strong as well as global compliance certificates and data controls. They should also offer reports detailing the user’s activity including the types of documents viewed and how often they were printed or downloaded. This level of transparency allows data rooms to adhere to regulations such as HIPAA and ISO 27001, and reduces the risk of sensitive information being disclosed.
Lastly good online VDRs offer a variety of features that help improve communication between teams. These include Q&A, FAQs along with annotations and comments on documents, instant notifications, and follow-ups. Through improving communication, these tools help teams collaborate faster and make better decisions.
When looking at online VDRs, look for providers who offer free trials of their software. These are a great tool to see if the platform is the one it claims to be as well as how user-friendly, intuitive and user-friendly it is for you and your team, and any other third parties that you plan to invite into the data room. Some providers allow you to purchase licenses per user. This is advantageous for businesses that plan to use their data room more than once.