When selecting a virtual information room (VDR) for the purpose of managing confidential data, the business must ensure it has all the features needed to be used for the purpose. The most important are:
The ability to upload a variety of types of files. This should include all common formats, and any additional ones needed for a particular transaction or project. A reliable VDR will allow a user to drag-and-drop files or folders, and rearrange and rename them and documents. This helps keep the data area organized and easy to navigate for users.
A secure and powerful search engine that permits users to locate any document or file with just a few words, without opening every single one. Certain VDRs also allow users to note notes on the documents that are only accessible to them, and not other third parties.
The best VDRs come with an easy, user-friendly and customizable interface. They are multi-device-compatible and do not require additional downloads of plugins. They are compatible with multiple languages. They also have a task-management system and are easily updated with any new information.
Lastly, it should be able track all due diligence requests, communication, and Q&A threads. It should also be able provide a history of previous due diligence actions to allow comparisons to be made. It should also feature an adaptable subscription model in order to allow the business to alter its plan or add more storage capacity as needs evolve. The proper features in a room can dramatically increase a company’s chances of success during M&A capital raising or an IPO and will also help improve long-term business processes.