When choosing a virtual storage room (VDR) to store confidential information, a business must make sure that it has all the features needed to function as intended. The most important features are:
Uploading diverse types of files is essential. This should include all the commonly used formats, as in addition to any other formats needed for a particular event or project. A good VDR lets users drag and drop files move folders and documents and change their names. This will help keep the data room organized and easy to navigate.
A powerful, secure search engine that allows users to locate any file or document only a few words without opening each one. Certain VDRs allow users to add notes to documents that can only be seen by them.
The most effective VDRs come with a simple design, easy to use and flexible interface. They are multi-device compatible and do not require additional downloads of plugins. They support multiple language. They also have a task-management system that is easily updated with the latest information.
Finally, the VDR should be able to keep track of all due diligence requests and communications including Q&A threads. It should also be able provide a record of prior due diligence activities to allow comparisons to be made. It should also offer an option for a flexible subscription, so that the company is able to change its package or increase storage capacity as the needs change. Using the right data room features can improve a business’s long-term business processes, and increase the chances of success in M&A, capital raise or an IPO.