Types of Data Rooms

When you’re choosing a virtual data room (VDR) for any due diligence project, collaboration or storage there are a myriad of types of VDR solutions available. It is important to choose the right solution depending on your requirements. Your files need to be easily accessible, able to be downloaded and shared safely and all your information remains private.

Due Diligence

Due diligence is one of the most commonly used applications for a virtual dataroom during M&A transactions. This involves sharing confidential information between two or more parties such as financial records, legal documents, and even employee information. A VDR allows the seller and buyer conduct due diligence in a systematic secure and controlled manner. It is important to monitor who has accessed the data and when to prevent security breaches or sensitive leaks of data. Features like watermarking and screenshot prevention can help to prevent this from happening during the due diligence process.

Preparation

A pre-planned VDR can be a fantastic tool to assist your team get organised prior to when the full due diligence process starts. It allows you to upload documents and information earlier to ensure that everything is ready to go when third party participants enter. This can result in valuable process efficiencies. The most effective preparation virtual data rooms have granular document permissions that can be customised according to more information the role, folder or even file and document level to ensure that only the information you need is available.