The key to creating a strong virtual data room is to have a well-organized file structure that has clear, informative title for each folder. This will allow users to locate what they require in seconds. It is also helpful to arrange the documents in an organized and consistent format (e.g. PDF text documents and financials in Excel) to make it easier to read the files as well as manipulating their content.
Granular permission levels are also crucial to stop document exfiltration and leakage. For instance, a group can be split into access groups based on their role in due diligence, for instance « management » and « finance. » In addition to granting permissions according to the type of file, the folder or a particular file, VDR software can notify administrators of any actions that take place within the repository by sending real-time notifications.
A VDR should also be easy to use to all users, even investors and founders who are not technically minded. Searching and navigation should take mere minutes and be as easy as navigating a crowded Dropbox or drive. The tool should also support non-proprietary formats as well as allow for easy collaboration with third-party companies.
The most efficient VDRs feature advanced functions that simplifies and streamlines crucial business processes like M&A due diligence or the IPO process. For instance, a great solution will combine project management and the virtual data room into one, along with a powerful OCR engine to automatically read PDFs as well as other fileswhich is a crucial feature for M&A diligence workflows. The best solutions provide 24 hours technical support so that experts can be consulted immediately during the crucial phases of a transaction.