The key to creating an effective virtual data room is a logical file structure with distinct, informative folder titles. Users can quickly find what they’re looking for. It also helps if the documents themselves are designed with clear and consistent formats (e.g. Text documents as PDF or financials in Excel will help you view the documents.
Another crucial aspect is the ability to grant granular permission levels that prevent leakage of documents and exfiltration. For instance, a team could be divided into access groups depending on their roles in due diligence, for instance “management” and “finance.” In addition to granting website permissions according to type of file, folder or individual file, VDR software can notify administrators of any activities taking place within the repository through real-time notifications.
A VDR should also be intuitive to all users, even investors and founders who aren’t tech-savvy. Searching and navigating should take mere seconds and be as simple to navigate a crowded Dropbox or drive. The tool should also support non-proprietary formats, and allow for easy collaboration with third party.
The most efficient VDRs come with advanced functions to simplify and streamline critical business processes like M&A diligence or the IPO. A virtual data room that integrates project management with a powerful OCR engine can automatically read PDFs or other files. This is an essential feature in M&A diligence workflows. The most reliable solutions also offer 24/7 technical support to ensure that expert experts are available immediately when required during crucial transaction phases.