Data room technology is becoming an essential tool for companies performing financial transactions. Most often, it is used in the M&A process for due diligence, it permits both sides of a potential deal to view confidential documents in a secure online environment. It is also used in other situations such as investor reporting patent and licensing applications such as loan syndication, private equity or venture capital funding.
A Virtual Data Room (VDR), in order to provide users with a user-friendly, high-quality experience, should include a number features. They include granular access rights that permit specific users and groups to limit their activities within the data room, including printing, downloading, viewing or editing. Certain VDRs also provide an option to remove personal information from uploaded files before the recipient has access to it.
The most effective data rooms include an intelligent search feature, which allows users to quickly locate the documents they need. Some will also feature a “smart index” that recognizes the structure of every document and makes it easier to navigate. A high-quality VDR will also have a user interface that’s intuitive and easy to use making it easy for even novice users to set up in no time.
It’s also essential to choose a VDR provider that provides a variety of flexible subscription packages, so that the user can increase or decrease their data storage and access levels based on the needs. This ensures that the company doesn’t spend more than it needs or having to change providers should their data space require to be changed.
