https://dataroomsystems.com/virtual-data-room-comparison-for-needs-of-potential-investors/
A virtual data room (VDR) is a cloud-based repository for documents and other files that are used to securely share sensitive information during complex business transactions, like mergers and acquisitions as well as due diligence processes and financial audits, fundraising rounds and legal proceedings. VDRs provide greater security and control over traditional physical storage, while reducing costs.
When selecting a VDR select one with a comprehensive and comprehensive set of features. This will meet your company’s requirements. For example, you may be interested in determining if the platform meets ISO 27081 standards for data protection or offers robust malware and virus scanning, uptime that exceeds 99.9 percent and multifactor authentication to guarantee that your uploaded data is safe. Similarly, look for customization options, such as color-coding, to make it easy to identify specific documents during internal meetings and at-a-glance reports that give executives in the C-suite the comprehensive overview they require.
A VDR is most often used in M&A transactions, when potential buyers review extensive documents of the companies which are being sold. M&A virtual data rooms permit more efficient due diligence process, and also reduce the risk of a breach by restricting access to sensitive information to the people who need access. When conducting an M&A transaction, users also benefit from the ability to collaborate effectively by using a VDR’s Q&A and comments sections. This improves productivity and speeds decision-making. Furthermore, M&A VDRs enable you to keep complete and thorough audit trails, which are a must for M&A due diligence.