Due diligence is essential for all stakeholders when working with large volumes sensitive files. The most common method of managing due diligence files is to store them in physical cabinets where they can only be viewed by the people who have access to the cabinets. This approach doesn’t scale when dealing with larger amounts of data or multiple transactions. A virtual dataroom (VDR) allows multiple interested parties to review sensitive documents and provide comments without having copies that could expose confidential information. VDRs are commonly used for due diligence in M&A deals, litigations, bankruptcy, fundraising and audits.
To make it easier for the due diligence process to speed up due diligence, the VDR has a file structure that is simple to navigate and organizes files according to their type or stage of the project. The structure of the folder can be modified to meet the requirements of specific projects and industries. The software comes with an index of default files that reflects an due diligence checklist. This helps users locate the necessary documents faster.
The VDR must have all security features https://dataroom3d.com/intralinks-virtual-data-room-review/ required to ensure that nobody has access to confidential data without permission. This includes the 256-bit encryption, remote shredding, dynamic watermarks restricted viewing mode, secure spreadsheet view, in-depth activity reporting and antivirus protection. It should also allow you to limit the possibility of downloading and print documents as well as limit how long users can spend on a document or screen. Different providers offer different security features, so make sure you know how they can meet your data room due diligence needs before choosing a provider.
