VDR software allows companies to share confidential business information securely with third individuals, like lawyers, compliance auditors and trusted advisors. Unlike file sharing tools, VDR software is designed to safeguard business-sensitive information and ensure that no one will be able to modify, erase or steal the content of shared files. This makes it ideal for the M&A due diligence process however, it is also suitable for any situation where sensitive information needs to be shared with potential investors, service providers or any other outside party.
When evaluating a virtual information room, look for the following features:
Security: VDRs are made to provide security that can resist malware attacks, hacks and other types of malicious behavior. Look for a service that can provide ISO-compliant security including encryption and backups. In addition, VDRs should be able to VDR should permit users to set access levels for various groups of users and to change access privileges swiftly if the mood shifts during discussions.
Document Management: A quality VDR will make it simple to upload documents and arrange them into meaningful categories with search functions that detect partial or exact matches and pinpoint specific folders. A VDR should also incorporate advanced functions such as OCR optical character recognition for PDFs as well as images and filters that will reduce the search results.
Collaboration and Communication: Check for a VDR that includes built-in discussion features as well as a chat feature that allows teams to work together, and messaging features that eliminate communication silos. In addition to that, a VDR should include an API that could be used to integrate it with other systems.