Virtual Data Room (VDR) is a software-based platform that companies can store and exchange sensitive documentation in a secure environment. It is used to conduct due diligence in mergers and acquisitions as well in financial transactions and litigation.
The VDR market is extremely divided with Firmex different vendors offering various features and prices. The best providers provide an intuitive user experience, and support staff that can speak multiple languages. They also offer extensive analytics that provides behind-the-scenes intelligence about how documents are being access.
Certain data rooms are created specifically for certain industries. The life science industry, for example requires storing and sharing documents that contain intellectual property and medical data. Litigation and audits require sharing documents with clients, and many providers have built-in functionality to facilitate these processes, such as redaction (blacking out portions of documents that contain personally identifiable information). The immovable property industry needs to communicate contracts to contractors to help with construction projects. Certain vendors have built-in functions to facilitate this, including the ability to instantly share blueprints as well as other important documents to subcontractors in a VDR.
When looking at options for data rooms, ask for a free trial and then look at how easy it is to use. A VDR that is difficult to use is not effective, so test the various features before signing. Additionally, consider the uptime and reliability of the VDR. A reliable VDR should be always available and available, with minimal interruptions.