Mergers and acquisitions are the most frequently conducted transactions that virtual data rooms are commonly used for. This type of deal involves a buyer looking over huge volumes of confidential documentation which must be shared quickly and securely. With a VDR that is built specifically for this purpose, businesses can streamline their due diligence processes, reduce risk and improve collaboration.
It’s important to look at the pricing model and feature set of a VDR to ensure they meet your requirements. A VDR solution should be flexible and scalable to your business’s expansion. Find a platform that provides a range of features including discussions and annotations, and an Q&A module that will facilitate clear communication and avoid confusion. Having a dedicated support staff who is able to assist with any questions is important.
The last thing check that the data room requirements align with your business needs to do is make sure your VDR can monitor the access of users and their usage. This feature of a VDR can be a powerful instrument to determine how serious buyers are and what documents they will be able to react to. A good way to do this is by adding document watermarks and viewing permissions. You can also add a ‘time stamp’ to every document, which will aid in keeping the track of the time that users have visited your documents.
You’ll need to upload a variety of documents after your VDR is launched to give investors and potential partners the most accurate picture of your company. You should also upload any important legal documents like major IP filings, external contractual agreements (e.g. academic technology in-licensing conditions, sponsored research agreements, or substantial lease contracts for real estate) as well as employee offer letters.