When choosing the best VDR provider, customers need be aware of fundamental factors that differentiate reliable vendors from less-than-reliable ones. These include:
Features that facilitate efficient folder and file organization: Organizing files in a data room allows authorized users to quickly locate and access documents and data files. A reliable VDR vendor will make this process easier by providing advanced features in software, such as drag-and-drop, automatic indexing renumbering files as well as granular permissions, dynamic watermarking, and much more. These tools ensure only relevant files will be accessible to a team of project managers or other parties collaborating during due diligence.
Security measures to ensure privacy: Choosing a VDR vendor that has strong online and physical security measures is vital to the success of any project. A reliable solution will be ISO 27001-compliant, and could also have additional security certificates, such as FedRAMP compliance, FINRA compliance, HIPAA compliance and GDPR. They should also include a variety of security features, including built-in fence view, watermarking, granular access permissions, and real-time vector watermarking.
Effective communication: Many modern VDRs are equipped with integrated communications tools which allow a project team or third-party collaborators to pose questions and conduct discussions on a single platform. This centralized communication streamlines interactions and reduces the chance of miscommunications and inefficiencies.
Legal holds: A VDR designed for specific purposes can assist companies on the close of a merger or acquisition deal comply with the requirements of a hold. A reliable provider can set up an encrypted virtual repository to keep and share information with legal counsel, ensuring that confidential information isn’t compromised.