It’s essential to maximize the data room experience as the majority of work can be completed in virtual reality. When you’re performing M&A due diligence and policy audits, or fundraising, data rooms allow you to share confidential information in a secure manner with all the right people. This digital space is enhanced to improve collaboration, simplify complex procedures and reduce risk.
Choosing the Right VDR
A variety of factors can render the data room less valuable than it is. For instance, one company utilized a “Stalinist” arrangement for the data room which required each member of the buyer’s team to sign an NDA and monitor that their computer’s mouse activity was monitored every five minutes, or else they would be automatically exiled from the PDR by the security system. Another common issue involves users having to manually download data from the PDR because sellers don’t want them to use USB drives that aren’t secured.
To avoid these issues, it’s essential to set up a data room with an organization structure that is reflective of the business or the transaction and clearly label folders and documents. Labeling clearly also aids in search, as well as grouping related documents together. It’s important to review the logs of your data room regularly and monitor access rights.
Some of the most popular data room providers are iDeals (rated 4.8 out of 5 at Capterra), Intralinks, and Merrill Datasite. These traditional data room providers have a long-standing history in M&A. They are well-known for their feature-rich and highly secure data rooms, but they can be expensive and require a long learning curve.