The most frequent use of virtual data rooms for deals and transactions is mergers and acquisitions (M&A). This type of deal involves the buyer reviewing large volumes of confidential documents which needs to be shared quickly and in a secure manner. With a VDR that is built specifically for this purpose, businesses can simplify their due diligence processes to reduce risk and improve collaboration.
It’s important to look at the pricing model and features of a VDR to ensure that they meet your requirements. A VDR should be a flexible solution that is scalable as your business grows. Look for a platform that offers a variety of features like annotations and discussions as well as the ability to use a Q&A feature to enable clear communication and prevent miscommunication. Having a dedicated support team who are available to assist with any questions is also essential.
Finally, you must make sure you make sure your VDR has the capability to monitor usage and access. This capability in a VDR can be a powerful tool to determine how serious buyers are and what documents they will be able to react to. A good way to do this is to add document watermarks and viewing permissions. You can also add a time stamp’ to each document, which will aid in keeping the track of the time that users have visited your files.
When your VDR is up and running, you’ll need to upload a large number of documents to provide potential investors and partners the most complete knowledge of your company. You should also include any significant legal documentation including major IP filings, external contractual agreements (e.g., academic technology in-licensing conditions, sponsored research agreements, or substantial lease agreements for real estate) and employee offer letters.