Comparing Data Rooms

A virtual data room (VDR) is an online repository used to share documents. It lets users securely keep and access sensitive information while securing themselves from the prying eyes of other users. VDRs are used in M&A transactions where buyers have to access large volumes of confidential documents for due diligence. Prior to using a VDR the documents were physically transferred from one office to the next in a time-consuming process that could take months for all bidders to complete their reviews.

When looking at data rooms it is important to be aware of the security features provided by each one. Consider features like two-factor authentication and timed access expiration. You can also limit access according to IP address. Also, take note of the certificate of compliance issued by the provider to ensure that they are in line with the top security standards.

You should also compare the additional services each VDR solution provides. For instance, some companies will provide consulting and training as part of their service offerings. This could be extremely beneficial for certain businesses, especially those that are just beginning to learn about the use of VDRs.

One thing to take into consideration is the pricing structure. Some providers charge a flat cost for the use of their VDR while others charge for advanced or custom features. Before deciding on a service be sure to know what you want from them. This will help you avoid paying for features you don’t require.