A virtual data room (VDR) is a secure repository of private documentation that can be accessed by authorized users. These online documents are used for a wide variety of transactions that include M&A due diligence, and fundraising.

Due diligence is a vital process that involves reviewing confidential information about a business prior to making a major decision. The process involves analysing hundreds of pages of information and it’s essential to safeguard this data from those who shouldn’t see it. A VDR is a great method to share this information and ensure privacy, however not all VDRs are created equally. The cost structures of VDRs vary, and it is important to know the differences before selecting the right provider. Many companies offer a variety of pricing models based on amount of storage gigabytes they can store or page uploads, users, as well as other factors. Some offer a free trial.

It is also crucial to look for an VDR that is easy to use. A good VDR, for example allows administrators the ability to configure multiple reports and access real-time analytics. This will allow administrators to stay current on the usage of the VDR and make any necessary adjustments. The UI is also expected to be simple to use for CFOs and accountants at the entry level.

It is equally important that the VDR be accessible to investors from all over the world. If a VDR is not accessible to investors from around the world, then the investors might not be able to virtual data room take part in the deal. This could greatly slow down the M&A process, or even stop it altogether.