A Virtual Data Room is a safe and secure online storage format used to hold and share confidential documents outside your usual corporate safety measures. Typically, the host of your VDR will offer varying levels of support to suit your needs and tailor your VDR experience to accommodate mergers and acquisitions.
Processes such as litigation, due diligence, and exchanging sensitive information take place safely in data rooms. This is just a brief overview of the importance of a virtual data room in your future business. However, here are five factors that you can expect from this type of virtual file-sharing system, so you can decide if your business should start using a Data Room for M&A.
Security is a top priority when it comes to hosting a Data Room. These hosts offer industry-level security akin to most major financial institutions and banks. The host company will also hold all information securely within certified data banks, which also have added safeguards against any digital or physical harm.
Within the Data Room itself, hosts can offer varying security and document safety features, including document expiration and completely customizable access settings. You can authorize varying sign-on policies, such as single-use sign-on or two-factor password authentication.
2. Personally Tailored
When integrated within your companies IT system, a VDR can be a highly adaptive tool for all of your business needs. It can allow for custom, personalized company branding over other generic data and file hosting services.
Having the ability to customize the data room with custom branding creates a more personalized experience for all parties. It also establishes the data room as your space and tells clients that you’re in control.
3. Ease of Access
Data rooms are designed to be ready to use with ease, just moments after creation. Your data room can also be easily accessible to all parties involved within the current dealings — parties that, you as the controller, can openly invite from internal or external sources. Some VDR’s offer the ability to group individuals together and organize varying levels of access depending on the room’s materials, payment plan, and your preferences.
Additionally, your VDR will remain accessible for as long as you deem necessary, with extensions readily available should they be required. This means clients and other employees can access the data they need on your terms.
4. Efficient Meetings and File Sharing
A VDR is the quickest and most secure way to guarantee that mergers or acquisitions move forward at a fast pace without losing critical documents or providing misinformation.
Clients have even started requesting that businesses use Virtual Data Rooms. Impress yours before any meeting even starts by organizing meetings through a VDR.
5. Consistent Support
Depending on your VDR host, support can be available all day, every day — with real-time responses from people with product knowledge to make sure everything runs as smoothly as possible during important procedures.
Due to this consistent support, most VDR’s can be up and running within minimal time. In addition to user support, VDR’s also offer support for your data, typically holding as much information, or more, as required for the necessary proceedings.
While there are certainly cheaper alternatives to VDR’s in free-use/basic file sharing applications, these applications typically have limited uses that do such delicate and important processes such as M&A, Q&A, due diligence, etc., no justice at all. They’re useful for sharing basic information but lack the security and control that is necessary.
A data room provides an accessible space where sharing sensitive information can be done so in a clean, organized and safe manner, all while maintaining control over the following processions. Consider upgrading to a VDR today and prepare for swifter mergers and acquisitions with your clients.