A virtual data room (VDR) is a digital storage space for files and documents. They are used by companies for a variety of reasons, but most commonly during M&A activities. A VDR minimizes the risk of documents being lost, or discarded. It also eliminates the benefits of using a virtual data room need for large office cabinets as well as the costs associated with renting them.
When selecting for a VDR, it’s important to consider the business requirements and regulatory compliance. Some of the essential features to look out for are drag-and drop, watermarking documents, redaction user permissions, audit trails and customization options. It is also essential to examine a company’s reputation and security level by reading reviews of customers on platforms like G2 and Capterra.
To get started upload your files onto the VDR and arrange them using folders or indexing. This will help users quickly find the information they’re looking for. Use the standard conventions for naming files and save your text documents as PDFs. Consider installing a version control system in order to ensure that users are working with the most up-to-date versions of documents.
Once the VDR is set up and users have access, you can grant access based on their roles. It is a good idea to keep an eye on the VDR on a daily basis to find out who’s using the files, how long they’ve been looking at them and whether there are any issues with particular files. You can address any issues prior to them becoming a major problem. It also stops any unauthorized parties from gaining access to your private information.