Steps to Choose Data Room Software For M&A Due Diligence

The virtual dataroom (VDR) is a great tool for sharing, storing and/or analyzing information by multiple parties. However, some tasks require something more. Due diligence processes in M&A, for example, requires a solution that’s more than a place to store documents and provides additional tools to aid in collaboration and project management. This kind of VDR solution is often referred to as a lifecycle-management solution. Some vendors provide solutions designed to aid in all aspects of the M&A process, such as due diligence, NDAs, and document expiry.

The first step in selecting the right provider is to look at the types of documents and files my explanation that you’ll uploading, sharing, or reviewing with the software. Consider what features you need, such as security options like dynamic watermarking which stops illegal copying, document encoding remote access revocation even after downloading, and the ability of creating folders that restrict access or control.

Another consideration is cost. Some data rooms charge per webpage and can be expensive for sharing lots of documents. It is recommended to find a company which offers a trial version of the software to test it prior to committing to a subscription.

You’ll also want to ensure that the provider you choose has an audit trail of high-quality that records every user’s activity. This will allow you to know how long each user spent on each document, and also where they clicked on the file. Some companies provide statistics by groups of users, or charts that can help you to better understand the data.

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