Virtual data rooms are online spaces for storing and exchanging confidential company documents during mergers and acquisitions or other complex financial transactions. VDRs have become an improved replacement for physical storage, which was inconvenient, inefficient, and too costly compared to today’s requirements. Now, you can have the entire volume of data safely and compactly stored in digitized form in the data room. However, there are many factors you need to consider before purchasing VDR services. This article will look at what you need to know before you buy a VDR.
Know Your Needs
A relatively common problem while selecting any software provider is the vast range of different options on the market, and virtual data rooms are no exception, as these tools are in high demand. There are many VDRs for various industries and with multiple features, but you need to choose the best option for your needs, and no one knows that but you.
Decide on the purpose for which you’re going to purchase a VDR, and highlight the key features that will help you achieve that purpose. For example, perhaps you’re planning an M&A transaction, IPO, or fundraiser, and based on the specific requirements that each of these processes requires, you’ll be able to choose a genuinely appropriate vendor.
Pay attention to the security performance of the VDR provider
One of the main reasons physical data rooms needed urgent replacement was frequent data breaches. Digital spaces are securely protected by something more sophisticated than just brick walls and steel doors, so they can’t compare to physical buildings when it comes to security. Confidential documents are a precious asset to every company, so it will be in your best interest to make sure that the data room services providers you choose have robust security features, namely:
- The presence of modern encryption methods
- A security certificate that meets all international standards such as ISO:27001 or HIPAA
- Document verification functions for review
- Monitoring and automatic reporting functions that show all user actions performed on the document
- Capability to use watermarks
- Detailed access permissions: deny visibility, printing, copying, forwarding, and loading of the document
- Ability to set terms for access to the document
Role-based user management
Check for a user-friendly interface
Most data breaches are due to human error, so if you don’t want that fate, you better make sure that the program interface is simple enough and easily adaptable for users with varying levels of computer proficiency. On the other hand, an too complex and cluttered interface leads to frequent delays, errors, security threats, and frustration on employees and management. Also, do not forget that your potential partners will also use VDR space, and you should take care of their comfort. The main features of an understandable interface are:
- Workflow automation features
- A question-and-answer section
- Multilingual support service with the ability to learn how to use the program and functionality of multiple devices
4What kind of support service does the provider offer?
VDR’s support team must be ready to help you any day, any time, or your productivity will suffer greatly. No one knows at what time or what day of the week you might need help, so having 24/7 support is a must. Find out precisely what services the program’s support team will be able to provide, whether it will be for a separate fee or included in the price of the plan. A good VDR provider such as https://vdraum.de/ should provide you with contacts of people who are ready to help you at any time.