How to Conduct a Virtual Data Room Review

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The virtual data room (VDR) is an online safe place to keep sensitive corporate documents for due diligence, M&A, contract negotiations and other projects. VDRs unlike other file-sharing apps, are designed to store large amounts of documents. They can be easily searched and organized using a clear folder system. They also allow compliance with industry regulations such as ISO 27001, GDPR and HIPAA for medical and biotech industries.

While many advisors and investment bankers may believe that all VDR providers provide the same features, there are actually significant differences in the capabilities offered as well as the pricing structures. Be sure to know the pricing structure prior to deciding on one provider, including whether they charge by page, number of users, size or the duration of the project to avoid unexpected costs or overages.

You should look for a user-friendly interface when reviewing the virtual data room. This will cut down the learning curve for new team members. It should include tutorials and guides as well as support for onboarding. Also, make sure the VDR is able to be customized to match your branding and integrate seamlessly with other tools and programs that your team uses. Find out if the VDR service has features that facilitate collaboration including real-time commenting and editing and Q&A modules. This can save time and increase communication between your team members during the due diligence process. Also, check if the provider offers audit trails, which provide details on who has accessed what document and when.

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