VDRs are unique business software solutions that reduce data breach risks and secure confidential files throughout the M&A cycle. Their security toolkit is dynamic and includes multi-factor authentication, session timeouts, location restrictions, document watermarking, click trails and restricted user access. These tools protect sensitive information against cyber threats and improve due diligence efforts.
Many of the best VDR services provide basic file sharing however, they also come with innovative features and security measures adapted to specific industries. Real estate transactions, for example require the ability to securely store plans and information for building construction, NOCs and mortgage documents, insurance documents and land register entries. It is also essential to share and manage documents with all parties. Investment bankers also use VDRs in order to streamline the IPO preparation. They need to share large volumes of documents with potential buyers of shares and the ability to monitor who has accessed which documents for duration is essential in the preparation of an IPO.
Some vendors offer additional services that ensure an easy transaction. They offer onboarding support as well as training and help centers. These may be extra but they can make it easier to complete the M&A and increase the value of the deal. It’s important to forecast what features you’ll require from your VDR and choose a provider that matches those requirements. Otherwise, expensive but unnecessary features could increase your overall costs and contribute to project delays.