Due diligence is an important element of any business transaction particularly those which involve sensitive information. VDRs streamline the process by making it easier to manage processes, ensuring exceptional security and offering intuitive functionality to non-technical users. The right VDR solution can significantly cut down the time and effort required for due diligence, while also allowing the parties involved to work on documents from anywhere, with any device.
In M&A the most commonly used use of a virtual room is to securely share documents such as corporate records such as audits, tax returns financial reports and other important documents. These documents may also contain sensitive information that require advanced security (such as research findings or patent-pending technology). Security measures like 256-bit SSL encryption and multi-factor authentication, access control, print restrictions and user activity reports are the most important elements in a VDR used for M&A due-diligence.
It is vital to keep all relevant documents up-to date without delay during the process of investment due diligence. To achieve this, you can utilize the automated document organization and search functions of a VDR. A well-organized VDR will allow users to locate the document quickly, without having to search through folders or type in keywords into search.
A good VDR is also able to assign roles and permissions to users according to the responsibilities of the individuals involved. This will allow the right people to access the information at the right time, while preventing others to see or download files they shouldn’t. It is also essential to select a VDR with a dedicated Q&A function, which allows for collaboration and communication, while keeping discussions private.