Virtual due diligence rooms are cloud-technology-based platforms that facilitate and expedite the deal-making process. Through allowing multiple parties to review documents simultaneously from a central online location virtual due diligence rooms cut down on the time and expense of transferring physical documents. When compared to traditional methods they also provide a more secure and efficient method to exchange information.
VDRs are widely used in an array of industries that span from financial services to healthcare and IT. They are particularly useful during M&A capital raising, IPOs and divestitures. They allow law firms and investment firms keep, share and access sensitive information easily and safely. Contrary to the typical cloud storage solutions, the virtual due diligence room comes with a number of additional features that make it more than a repository for files.
One of the key features is document versioning. This ensures that the most current version of a specific document is always available. A VDR also protects against printing that is not authorized which could be a threat in M&A transactions as well as other transactions that are sensitive. The most recent versions of VDRs come with AI functions which can improve efficiency and speed up review of contracts. DFIN Venue, for example, offers a variety of next page about dynamic data defense the edge of virtual due diligence rooms automated tools like auto-indexing and full-text search.
Choosing the best VDR for due diligence requires knowing which features will best serve your particular needs and goals. Look for a platform that has an easy-to use interface and integrated support to avoid paying for solutions that don’t meet your needs. Then, take advantage of free trials to see how the software performs and make sure that it meets your expectations.
