A virtual data room (vdr) for deal making is an online, secure repository that allows companies to share data with their partners. Instead of having to work within the constraints of scheduling and location that would be inherent to the use of a physical data room, a virtual data room offers an alternative that allows due diligence teams to work in their own time.

In a world where M&A due diligence is often just the beginning of a lengthy process, it’s essential that all parties are able to share large volumes of documents quickly and efficiently. Whether it’s M&A due diligence, VC funding or capital raising, IPOs, or other types of liquidity events, the right virtual document management software can make a huge difference.

The top VDRs in comparison to other free options for document sharing include solid security features that shield your data from hackers and guarantee that it is not accessed or viewed by anyone else. This includes access control features that allow large groups of individuals to collaborate without difficulty, but only view only the sections of documents they need. To increase transparency, a well-designed corporate VDR could even include dynamic watermarks that track who’s downloaded read review or printed files.

When choosing a VDR choose an option that allows for simple setup and a quick deployment so that you can begin your journey right away. A VDR for M&A should also have an archive that can assist in post-closing issues such as regulatory filings and due diligence audits. A flat-rate pricing model that eliminates unexpected project costs is also important.