What to Look For in Data Room Solutions
The best virtual data rooms have features that make it easier for users to access and review documents. They have a table of contents, drag-and drop capabilities, subfolder and folder structure and search functionality. For enhanced security, they also offer granular permissions for file sharing and viewing (e.g. view only, editing, and uploading in full fencing view to block screen printing and unauthorised viewing; remote data wiping, etc.).
Another factor to consider is whether the VDR has advanced capabilities such as Q&A and document versioning, to simplify due diligence and keep projects on in the right direction. Some, like FirmRoom go even further by implementing request management that syncs all diligence request and communications in one location designed for buyers and sellers.
A quality VDR can also offer an adjustable dashboard that displays the most recent activity and notifications to ensure that everyone is up-to-date. It should also provide features that accelerate the process by removing obstructions and ensuring continuous distribution without interruption. This includes an inventory of all potential participants and categorizing them according to role or participation to help make the invitation process more efficient.
The ultimate goal of any data room is to provide all of the data needed to make an agreement while keeping confidential information from getting into the wrong hands. Be aware that too much information could be a problem. Investors can get distracted by irrelevant data or make decisions based upon incomplete or inaccurate information if you share too many details.
