How to Set Up a Virtual Data Room

Virtual data rooms are an efficient method of sharing documents with other parties during due diligence as well as other M&A transactions. But how effective the solution is depends largely on how well it’s set up and used.

Choose a VDR service that has been designed with serious sharing in mind. It should offer a variety of tools to allow users to upload and distribute large quantities of files. It should allow administrators to create folders and indexes easily. It should have a powerful search tool that enables users to quickly locate documents. The provider should allow users to download and print PDF files that have watermarks. Administrators should be able track the times when documents are printed and downloaded.

Take into consideration whether a vendor provides a single-use transaction or an annual subscription when you choose a vendor. An annual subscription offers more flexibility and a lower cost of ownership. It also eliminates any risk of price increases that might occur during the term of the contract.

A reliable VDR can be compatible with multiple virtual data room browsers and platforms including Mac and Linux. It should also be able to work with any file format. It should also be possible to personalize a virtual room’s appearance and feel by using customized branding.

Verify that the VDR is equipped with the most robust security features to prevent unauthorised access. The provider should, for example, offer multi-factor authentication, as well as user security impersonation. It should also allow administrators to create a session timeout which will automatically close a user’s session if they are not active for a set amount of time.