Virtual due diligence rooms are cloud-technology-based platforms that facilitate and expedite the deal-making process. By having multiple parties review documents from a central online location, they cut down the time and expense of sharing physical files or sending emails. They are also more efficient and secure than traditional methods of sharing information.
VDRs are used extensively across a range of sectors from financial services to healthcare. They are particularly useful during capital raising, mergers and acquisitions, initial public offerings (IPOs) and divestitures. They allow law firms and investment companies to access, store and share confidential information quickly and securely. A virtual due diligence room is more than just a basic cloud storage solution. It also comes with many other features.
One of the most important features is document versioning. This assures that the most recent version of a document is always accessible to review. A VDR also stops printing without authorization, which could be a threat in M&A transactions and other transactions that require sensitivity. The latest versions of VDRs contain AI functions which can improve efficiency and speed up review of contracts. DFIN Venue, for example offers a variety automated tools, including auto-indexing and full-text search.
Choosing the best VDR to conduct due diligence requires knowing which features will best serve your specific requirements and goals. To avoid spending money on a next page about dynamic data defense the edge of virtual due diligence rooms product that does not satisfy your needs, look for a system that has an easy-to-use user interface, as well as built-in support. Take advantage of trial versions to see how the software works and make sure that it meets your expectations.
