Virtual data rooms are a great way to share information with third parties during due diligence or other M&A transactions. However, how effective the solution is will depend on how it’s set up and used.

Choose a VDR provider that was created with serious sharing in mind. It should provide a broad array of tools that permit users to upload and share documents in bulk. It should also allow administrators to create folders as well as document indexes with ease. It should have a robust search tool that enables users to locate documents quickly. Ideally, the application should enable users to print documents and download PDF files with watermarks. Administrators should be able monitor the time when documents are printed and downloaded.

Consider whether a vendor offers a single-use transaction or an annual subscription when choosing a vendor. A subscription that is annual gives you more flexibility and lower cost of ownership. It also eliminates the risk of sudden price increases over the term of the contract.

A quality VDR should support a variety of browsers and platforms, including Mac and Linux. It should also be able to work with any file format. It should also be possible to modify a virtual dataroom’s appearance and feel with custom branding.

Verify that the VDR is fitted with high-quality security features to ward off unauthorised access. For instance, the service should provide multi-factor authentication as well as user security impersonation. Additionally, it should allow administrators to set a session limit www.thatvdr.com/what-should-you-know-about-a-virtual-data-room/ that will shut down the user’s session following an amount of time inactivity.