Virtual Data Room Software Secrets for M&A Due Diligence

There is no way to make mistakes when it website comes to sensitive files that are shared during M&A transactions. Data breaches, miscommunications, and other mistakes that could cause deal disruption are costly, time consuming, and can derail an entire transaction. Fortunately, modern VDR solutions offer exceptional security and functionality at a fraction of the cost of old technology.

The best virtual data rooms platforms are scalable and user-friendly designed to meet the specific requirements of a specific business workflow or transaction. This means you can configure the virtual data room to include the exact features and permissions you require, while giving authorized users access to the most advanced due diligence tools such watermarking, role-based security, virus scanning and two-factor verifications.

CapLinked’s hierarchical tag system, for instance, enables administrators to organize virtual data rooms into sub-categories based upon the nature of the document. This will speed up due diligence. You can also monitor the number of people who have viewed documents using various reports such as a «heat map» by user group and various charts, which show who has seen which documents and the length of time.

Private equity and venture capitalists firms frequently look at multiple deals at one time and are able to gather a lot of data that need to be organized. The capability to upload documents in bulk and sort them into easily accessible folders and groups speeds the due diligence process. This allows you to close more transactions in a shorter period of time.