Virtual data rooms are a way for businesses to conduct major deals like mergers & acquisitions in a safe, encrypted online environment that respects the due diligence process. Essentially, they allow multiple parties to securely review and sign confidential documents without them having to be in the same place.
Now, picking the right provider for a service as important as this can be tricky. To help you get started, we’ve compiled a list of 5 things you definitely need to consider before making the investment!
- Ease of Use
You are going to be sharing your virtual data room (VDR) with many different clients, so you want to make sure its user interface is streamlined and intuitive. Clunky designs and confusing layouts have cost more than enough time for businesses everywhere, you want to make sure that everything in your VDR runs smooth and without any issues.
Pay attention to the functions of your potential VDR provider. A big plus are features like drag-and-drop or auto-indexing options. Some VDRs even include user dashboards and reporting features that tell you precisely when your data was accessed, by whom, and what they did with it. These features are not only nice to have, but they also save a lot of time when it counts the most.
- Security
Whenever you’re handling confidential information, you generally want that information to stay confidential. Security is obviously the main focus for many VDR providers, yet many still lag behind when it comes to the newest innovations in encryption.
Basic security features most VDR providers possess are audit logs, dynamic watermarks, and two-factor authentications. Some go the extra mile and provide a multilayered approach to security. Also, be for the lookout for specific international security certifications like HIPAA or SOC 2.
- Technical Support
Imagine this, you’re in the middle of closing a deal with a prospect on the other side of the world. It’s the middle of the night and suddenly a technical error pops up in your VDR. Do you now want to go through the hassle of trying to talk to a FAQ chatbot or do you want immediate access to a real person, qualified to solve your issue? Yeah, we think the answer here is clear. Look for a provider that offers 24/7/365 support.
- Pricing
If you have dealt with any Software-as-a-Service providers, you will know that often their pricing schemes are in-transparent and result in plenty of surprising extra costs. Look for a provider that is clear about the costs for you and doesn’t try to entangle you in pricing schemes.
- Control
Even though none of us like it, there is the reality of some business deals falling through. If that happens, how are you going to protect your sensitive documents and intellectual property? A good VDR provider comes with the option to set advanced user permissions that allow for different levels of access for different people. These features are important to assure regulatory compliance and limit post-closing integration risks.
Here are the 5 things you need to consider when finding a virtual data room provider. Today you have many options to choose from which you can decide by doing your own research and due diligence. Take advantage of all the information online and also free trials that will give you an actual look and feel of each provider to find your ideal partner.
Alternatively, providers such as Firmex.com offer clients an opportunity to book a demo for free so reach out today!