VDR software allows companies to share sensitive business information with external third parties, such as lawyers and compliance auditors. VDR software, unlike file sharing tools is designed to protect sensitive business information and guarantee nobody can alter or delete the content of shared documents. This makes VDR software perfect for M&A due-diligence but also in any situation where sensitive information needs to be shared with outside parties, including service providers, investors, or other interested parties.
When evaluating a virtual room Look for these characteristics:
Security: VDRs offer an environment that is secure and can withstand malware and hacking. Look for a service that can provide ISO-compliant security including encryption and backups. A VDR should also permit users to set different access levels for different individuals and alter these privileges quickly if moods change during negotiations.
Document Management Document Management: A VDR that is reliable allows you to upload documents, arrange them into meaningful categories, and use search functions to locate specific folders and find partial or exact matches. A VDR should also contain advanced functions like OCR, optical character recognition for PDFs as well as images and filters that will limit results of searches.
Communication and Collaboration: Look for a VDR that includes built-in discussion features such as a chat function that allows teams to work together, and messaging functionality that eliminates mergers and acquisitions communication barriers. In addition to that, a VDR should include an API that could be used to integrate it with other systems.
