It is crucial to conduct due diligence, whether you are an investor who wants to invest in a new company, or an entrepreneur looking for venture capital investment, or an acquiring firm that is looking to acquire. This involves analyzing the company, digging up the company's proprietary information, and conducting all necessary investigations to confirm that the company is properly presenting itself. This type of investigation was previously carried out in meetings or with binders filled with documents. The process is now conducted online using a platform called the virtual dataroom (VDR).

A VDR allows you to securely share large amounts of confidential information within your company. It can be used in M&A, litigation, bankruptcy and fundraising.

Look for features sites such as watermarking, multi-factor authentication, and encrypted encryption with 256 bits to ensure the security of your VDR. Also, choose an option that has built-in infrastructure security and baked-in compliance management. A reliable VDR can also provide user-friendly document management and search capabilities that support due diligence processes, including features such as bulk-structure imports, automatic indexing, and control of permissions.

Select the VDR platform that has robust data analytics and visualisation tools to ensure the accuracy of information. These tools are helpful for comparing and analysing the performance of companies, such as profit margins. They can also assist in identifying areas that might require more research.