Data Room Due Diligence

When dealing with large volumes of sensitive data due diligence is essential for all parties. Due diligence files are typically kept in cabinets that are only accessible to those who have physical access. This method isn’t scalable when dealing with large amounts of data or multiple transactions. A virtual dataroom (VDR) allows several interested parties to look over sensitive documents and comment without making copies that could expose confidential information. A VDR is typically utilized to conduct due diligence in M&A transactions, litigations, bankruptcy, fundraising and audits.

A VDR’s structure for files is easy to navigate, and files are organized based on the type or stage of the project. The folder structure can easily be modified to fit the needs of different projects and industries. The software typically includes an initial file index that reflects the due diligence checklist, which can help users find the required files quicker.

To ensure that no one will gain access to confidential information without permission To ensure that no one can access confidential information without permission, the VDR should provide complete security features. This includes 256-bit encryption remote shredding, dynamic watermarks, restricted viewing mode, secure spreadsheet view, detailed report of activity and antivirus protection. You should be able control how users print and download documents and also set time limits for viewing the document. Different providers have different security features, so make sure you compare their capabilities before settling on the best one.