Whether you are an investor looking to invest in a start-up or an entrepreneur looking for venture capital funding, or a company that is considering an acquisition purchase, it is essential that you do your due diligence prior to proceeding. This means conducting research on the company, obtaining the company’s proprietary information, and then conducting all the necessary view it investigations to confirm that the company is operating correctly. Traditionally, this investigation was done in physical meetings or with binders of documents. The process is now conducted online with the help of a software called a virtual dataroom (VDR).
A VDR is designed to securely share large amounts of confidential information outside the walls of your organization. It can be used in M&A deals or litigation, bankruptcy, fundraising, audits – almost any situation where multiple parties need to review confidential documents.
Look for features such watermarking, multi-factor authentication and encrypted encryption of 256 bits to ensure the security of your VDR. Also, look for an option that has built-in infrastructure security and baked-in compliance management. Additionally, a reliable VDR should provide easy to use documents and search capabilities that can support a due diligence workflow with features such as bulk-structure import, automatic indexing and the control of permissions.
To make sure that the information provided in the VDR is correct, select a platform that offers robust data analytics and visualization tools. These tools are useful in comparing and analyzing performance of one company against another, such as profit margins over time. They can also help you identify potential issues that require more investigation.