VDR software allows companies to share critical business mergers and acquisitions information with outside parties like lawyers and compliance auditors. VDR software, unlike other file sharing tools are designed to safeguard sensitive business information and guarantee that no one is able to alter or delete the contents of shared documents. This makes it perfect for the M&A due diligence process but also for any scenario where sensitive information needs to be shared with potential investors, service providers or any other outside parties.

When evaluating a virtual data room, look for the following qualities:

Security: VDRs are created to provide security that can withstand hacks, malware attacks and other forms of malicious behavior. Look for a provider that provides ISO accredited security solutions such as encryption and backups. In addition, the VDR should permit users to set access levels for various groups of people and change the privileges as quickly as the mood shifts during negotiations.

Document Management: A VDR that is reliable allows you to upload documents, organize them into meaningful categories, and use search functions to locate specific folders and find exact or partial matches. A VDR must also have advanced features like OCR (optical character recognition) for PDFs and images as well as filters to limit search results.

Collaboration and Communication: Look for a VDR that includes built-in discussions, a chat feature that lets teams collaborate, and messaging capabilities that break down communication silos. A VDR should also include an API to allow it to integrate with other systems.