Choosing a Virtual Data Room Provider

A virtual dataroom is an online service that allows the exchange of information between third parties in a safe and efficient manner. It is often used in the M&A phase, when buyers are reviewing large volumes documents, but can also be utilized in any situation where confidential access to information is required by third party.

Take into consideration your company’s needs when selecting your VDR. Some industries make heavy use of VDRs for various reasons, including M&A, due diligence intellectual property protection, biotech licensing. However, even small firms benefit from the capability to securely share files and documents with potential investors, board communications and more.

Cost structures are also crucial when choosing the right VDR provider. You should look for providers that provide different pricing models that range from per-storage and per-page to flat costs and unlimited usage. These pricing models are similar to those of cell phone plans and internet plans. This allows you to know exactly what you’re paying.

The best VDR providers offer simple user-friendly interfaces that are suitable for both the CFO and the accountant in the beginning. They should also be secure enough to meet your industry’s requirements and provide audit logs that document what the users do within the data room.

It’s a good idea to test a few VDRs before deciding on one for your business. You can compare features to ensure you get the most value from the tool, without spending additional money.