The most crucial business transactions require a substantial amount of data that must be reviewed and communicated in a timely manner. This sensitive information can ruin an arrangement or cause a company to lose market share and revenue if it falls into the wrong hands. This is why it’s essential to ensure that only the right people are examining the correct information at all times. This is the point where a virtual data room comes in handy. A virtual dataroom (VDR) simplifies mergers and acquisitions due diligence and M&A while securing confidential documents.

A VDR is an online secure repository that is able to securely store documents of a high-value for business and permits restricted access to internal and external stakeholders. It can also reduce risks of unauthorised file sharing by offering security-first features such as multi-factor authentication session timeouts, document level permissions, watermarking, view only modes, screenshot blocking and the ability to generate granular reports on activity. A VDR is an ideal solution for M&A due diligence and other high-risk transactions.

VDR providers vary in terms of features, ease of use, and cost. The best choices for businesses are those that can offer an integrated repository that allows for flexible data permissions, granular activity reports, and custom metadata. They should also offer security and support services which will help protect the integrity in the event incidental damage.

Datasite, RR Donnelley and Intralinks are the most favored providers. Each provider offers a robust array of features and M&A tools however their pricing differs. In the lower tier there are a few providers such as Digify that offer meager functionality with a complex pricing tariff.