VIRTUAL DATA ROOMS
A virtual data room is a collection of information that is used for storing and distribution of documents. It is used to facilitate due diligence process during an M&A transaction, loan syndication or private equity and venture capital transactions. The diligence process is used as a physical data room for disclosure of documents. But virtual data room has replaced traditional physical data rooms.
Physical data rooms are in the form of an extranet where bidders and their advisers access via internet. An extranet is a website with limited controlled access using a secure log in supplied by the vendor that can be disabled anytime by the vendor if a bidder withdraws. According to the protection applied by digital rights management, much of the information is confidential and restrictions are applied for the viewer’s ability to release this to third party by means of forwarding or copying or printing.
Virtual data rooms acts as a central repository of data in the process of mergers and acquisitions. Virtual data rooms helps to view business information in a controlled environment. Physical data rooms should be in secure premises with controlled access. In most cases it is seen that only one bidder team can access the room at a time that is time consuming.
A virtual data room is designed exactly as conventional data rooms. Virtual data rooms perform functions like controlling access, viewing, copying and printing as well as setting time limits on viewing and logging. For efficiency, many businesses and industries have moved to virtual data rooms instead of physical data rooms.
Virtual data rooms gives instant access from any location and any device with internet connection, secure data management and storing as well as time and money savings during confidential business deals are the key reasons why business turn to virtual data rooms.
Today Virtual data rooms became a secure online meeting place for dealing. Virtual data rooms are used in many industries such as biotech, business brokers, accounting, investment banking, loan advisers, real estates, energy, legal, government, consulting, media, pharmaceutical, venture capital, manufacturing, IT and telecommunications, healthcare, financial advisers and others. Virtual data rooms offer military level security, multi language support, full text search, in document linking and a wide ranging selection of other advanced functions.
Online data room providers a well planned strategy to prepare better deal. The following data should be kept on mind for virtual data rooms:
1. Secure data management such as data encryption, antivirus protection, account theft prevention etc.
2. Digital rights management
3. Document filtering tools
4. Advanced search in VDR
5. Activity tracking and audit log
7. Scroll through viewer
8. Multiple files format support
9. Bulk uploads
10. Drag and drop files
11. Possibility to have several projects in one account
Virtual data rooms also provide a number of advanced security options, multiple step login authentications, print screen button disabling, questions and answers functionality, restriction access by time, Microsoft office integration and dynamic watermarks. They also provide personal training if needed.
To find the right virtual data room’s first, look for the features provided by Virtual data rooms then you can realize what you want from Visual data rooms. Secondly, you need to read the reviews of virtual data rooms and how it can be used in your industry. Thirdly, Virtual data rooms that giving the facility that it gives availability of a free trial. The free trial can vary from one month, sixty day trial or a three month free trial. Fourthly, select a Virtual data room’s provider which has already been used in many financial transactions and IPOs. Fifthly, Virtual data rooms that do not outsource any part of data hosting or management process to third parties for security reasons. Sixthly, Virtual data rooms that have several features like help you gather organize and present your data online. Seventhly, Virtual data rooms that which can be customized according to your needs.
So choose the best virtual data room because you are free to read the reviews, compare functions, capabilities and rates and most importantly have information on security and functional aspects. Therefore, have a brief idea of your project and what you require from a Virtual data rooms before you get started.