What to Look For in Data Room Solutions
The most effective virtual data rooms include features that make it easier for users to view and access documents. Table of contents drag and drop features as well as underfolder and folder structures, as well as search capabilities are all included. To ensure security, they provide specific permissions for sharing files and viewing (e.g. view only, editing, and uploading with full capacity; fence view to prevent screen printing and unauthorised viewing; remote data wiping, etc.).
A VDR should also have advanced functionality such as document versioning and Q&A to make due diligence easier. This will help keep projects on track and ensure that they are completed. Some, like FirmRoom take this a step further by implementing request management that syncs all diligence request and communication in one place and is customised for buyers and sellers.
A reputable VDR should also include a customizable dashboard which shows the most recent activity and notifications so that everyone is kept up to date. It should also have features that accelerate the process by eliminating obstructions and ensuring continuous distribution without interruption. This includes an inventory of all potential participants and grouping them by role or participation to help accelerate the invitation process.
The ultimate goal of any data room is to provide all of the information required to make an agreement while keeping confidential data from falling into the hands of a thief. It’s important to remember that there is such a thing as too much dataIf you share more data than necessary, investors may be distracted by irrelevant information or take decisions on incomplete or unreliable data.