Data rooms can speed up the due diligence process during M&A and capital raising, simplify business transactions, and secure sensitive information. Dedicated virtual data rooms are more secure than generic tools for sharing files, and can be customized to meet specific business demands. Some companies believe they will save money if they make use of free virtual data rooms instead. This is a risky idea since data rooms that are free are more prone to theft and privacy breaches, which could be costly and even impossible to repair.

Choose a vendor that offers advanced features within a budget-friendly package to avoid costly mistakes. A quality VDR such as this will include an automatic index of the file as well as a dynamic watermark that puts the recipient’s email address in real-time on the document to deter screenshots. It also offers advanced expiry options, as well as DRM to prevent unauthorised printing and sharing. It should also have an easily customizable portal for partners and clients as well as an easy, user-friendly graphical interface that is accessible to the CFO and entry level accountant.

A good VDR should be compatible across an array of operating systems and mobile devices. It should also include ample reporting capabilities that transform activity audit logs in to useful reports. Visual analytics should be available to ease and improve M&A and due diligence processes. It should allow users to configure access permissions that align with each user’s role.

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