A virtual data room (VDR) is a space that allows different parties to access documents. They are used for due diligence in M&A fundraising, M&A, as well as corporate restructuring. They provide a more controlled environment compared to email and have proven to increase productivity by eliminating the need for meetings.
Typical vdr services include features like:
A complete audit trail that records who uploaded or modified files, downloaded them or deleted them. This is essential to demonstrating conformity in the case of a dispute. A reliable data room will also offer the ability to assign user rights at the document, folder, and the individual level of each file.
Users can also make notes on documents in the data room. These are only visible to the person making the note, and are not visible to any other viewers of the document. This is helpful in the review and clarification of important documents, and also help speed up negotiations.
It is also worth choosing a service that offers features that can improve the efficiency of a deal-making procedure like built-in chat, Q&A and video calls. A reliable provider of data rooms has flexible subscription plans that can be adjusted to suit the demands of businesses. Finally, a data room will allow you to keep the track of deadlines, tasks and uploads of documents with automatic email notifications. For instance, IDeals’ iDeals platform offers its customers detailed reports of activity inside the virtual data room on a page-by-page basis as well as automatic email notifications regarding each action. This allows them to stay on top of the topics that investors are interested in and speed up the process of closing.