How to Build a Powerful Virtual Data Room
The key to building a strong virtual data room is a structured and logical file structure, with clear, informative folder titles. Users can easily find what they are seeking. It is also helpful that the documents themselves are organized with clear and consistent formats (e.g. Text documents in PDF and financials in Excel will make it easier to view the documents.
Another key is granular permission levels that prevent leakage of documents and exfiltration. VDR software allows teams to be split into groups according to their roles in due diligence. For example, « management » or « finance » can be granted access.
A VDR should also be easy to use to all users, including founders and investors who are not technically minded. Searching and navigating should take a matter of seconds and be as simple as navigating a crowded Dropbox or drive. The tool should also work with non-proprietary formats and facilitate collaboration with third-party companies.
The most efficient VDRs are equipped with advanced features to simplify and streamline crucial business processes like M&A diligence or the IPO. A virtual data room that combines project management with a robust OCR engine can automatically scan PDFs and other files. This is a crucial feature in M&A diligence workflows. The best solutions offer 24/7 technical support so that specialists can be reached immediately during the crucial phases of an acquisition.