Implementing a VDR for Deal Success

select the right data room vendor for your unique needs

A VDR is also known as an electronic room or data room is a secure online repository which allows for the sharing of documents in a seamless manner. It is a vital tool for any business going through any kind of transaction, whether it’s an acquisition, merger or raising capital.

To get the most from to get the most value from a VDR system, businesses must focus on features that make it simple to use and comprehend. A learning curve should be expected with any software however, a user-friendly interface and intuitive features help speed up due diligence. A VDR should also provide support across a wide range of different types of devices, such as mobile phones and tablets. Support options include chat within the app, multilingual phone and email customer support, and useful knowledge base.

When selecting the right VDR it is important to think about the type of files that will be stored. The most popular use case is M&A in which the process requires extensive documentation and viewing. Private equity and venture capital firms usually analyze multiple deals at once which means a lot of paperwork that demand an organized system. A VDR streamlines file-sharing for these stakeholders, speeding diligence and providing clear paper trails.

Other popular VDR uses include IPOs, and management of intellectual property. Virtual data rooms are used by tech companies to provide investors with confidential information as well as proprietary code. A VDR can be used to ensure that only the right parties have access to the information.