The most popular use case for virtual data rooms for deals and transactions is mergers and acquisitions (M&A). This type of deal involves buyers reviewing huge volumes of confidential documentation, which must be shared quickly and in a secure manner. With a VDR that is built specifically for this purpose can streamline their due diligence processes reduce risk and enhance collaboration.
When selecting a VDR provider, it’s important to look at their pricing model and features to ensure that they meet the requirements of your deal process. A VDR solution should be flexible and adaptable to your company’s growth. Choose a platform that has numerous features, like discussions and annotations. It should also feature the ability to ask questions to improve communication and avoid miscommunication. Having a dedicated support staff that is available to help with any questions is critical.
Lastly, you should ensure that your VDR has the capability to track usage and user access. This feature of the VDR can be a powerful tool for determining how serious buyers are and which documents they will respond to. A great way to do this is to add watermarks to documents and viewing-only permissions. You can also add an “time stamp” to each document. This will help you track when users have viewed the documents.
After your VDR is ready you’ll need to upload a number of documents in order to give potential investors and partners the most complete information about your business. Include any important legal documents, like IP filings, as well as any external contracts, such as sponsored research agreement or large lease contracts for real estate, and employee offer letters.