Modern companies use virtual space – secure VDR – to store, manage, and share corporate data. VDR is a cost-effective solution that allows authorized individuals to work with sensitive information securely. By eliminating the need for physical storage space, online rooms provide a structured virtual environment that every party can quickly access using an Internet connection. Various data room providers offer similar storage and record management services. We have selected four of the best platforms to help you complete a fast and secure business transaction.
Areas of Use for Virtual Data Rooms
Online rooms are helpful in various fields and industries, from real estate and healthcare to law and biotechnology. This is because virtual data rooms offer:
- an organized and structured system of necessary documents
- fast and reliable document exchange
- secure access to documents from any device connected to the Internet
- a convenient and safe place to discuss documents online
Let’s take a closer look at some of the popular cases of using online data rooms in various areas.
Mergers and acquisitions
Regulation of such transactions requires a secure environment for exchanging information that VDRs have. The use of digital rooms guarantees transparency of transactions, security, and easy access to data by authorized parties.
Upon sale of a company
With virtual data-sharing platforms, buying or selling a business becomes a simple 4-step process:
- Preparation of digital documents.
- Organization and structuring of files as needed.
- Uploading documents to online storage.
- Granting access to members.
Since virtual rooms allow documents to be edited and updated instantly, transactions take days instead of months to reduce negotiation time.
Fundraising projects are time-consuming and involve many people who come and go. This makes the problem of having a secure environment for document exchange a critical necessity.
Dataroom software features, such as Q&A, document management, and comment sections, allow users to make changes and updates quickly. Besides, using the room, you can stay on the same page in different projects.
Legal document management
Law firms benefit from the security, cost-effectiveness, and availability of VDRs. For example, storing documents offline is expensive and risky, but with online rooms, legal teams no longer have to worry about that.
If several specialists are involved in the same process, they will not need to spend time and money traveling to view and work with documents. Instead, they get instant and secure access to the data they need.
Real estate transactions
Real estate professionals can view dozens of files every day. In addition, they store and protect documents for both parties, sometimes, for a long time. Online rooms relieve agents of file hassles and provide a secure, anonymous business environment.
Data rooms for due diligence help companies mitigate risk by:
- reducing the time companies need to adapt to changes and prepare documents
- maintaining control over every transaction process
- allowing administrators to quickly respond to any suspicious activity, revoke access, or remove data from user accounts.
It is easy to see that VDR is an excellent tool for responding to and managing risk and change.
Top 4 Best Online Rooms for Business Deals
A virtual data room is an essential solution for secure transaction management. When choosing an online room provider, consider the availability of features such as apps for IOS and Android devices. It should also be possible to customize the design according to the company’s style. Look out for bulk upload functionality, user activity reporting, layer-by-layer encryption, user permissions for projects, permission revocation, and pricing. We have selected four services that best meet these conditions.
|iDeals||There are three tariff plans. It also provides a free 30-day trial.||Drag and drop feature to upload a file.Bulk upload feature with no limits on file size, number, and format.Provides automatic index numbering and full-text search capabilities.||iDeals Solutions is a sophisticated and reliable provider of virtual data rooms. Investment bankers, lawyers, and top managers worldwide verify their experience and outstanding results.|
|Intralinks||The price starts from $25. You can also get a free 30-day trial.||Drag and drop function.Upload multiple files or documents at the same time.Changing file names. Detailed reporting on member and visitor activity.||Intralinks offers a variety of M&A solutions, including a virtual data room. It has some advanced features like AI-assisted file analysis and management. In addition, it has features like watermarking and automatic indexing.|
|Merrill||Look at the contacts on virtual-dataroom.org to clarify the relevance of the price list.||Permission management features.Document access settings.Download files with one click.You can publish files immediately or set up publishing later.||The service is used in investment banking, corporate companies, law firms, and start-ups. Allows you to configure settings and manage documents.|
|BrainLoop||Request an offer for detailed pricing information.||An online solution but can be used offline.Adapted for modern devices.Integrated into MS Office.||It has modern solutions for protecting company data, for example, SaaS. You can use the platform to enter business transactions with partners or communicate with a board member. It is a secure platform for collaborating on M&A transactions.|
Rules for Choosing an Online Room
Follow these tips to select data room providers that meet your needs:
- Vendor research. Choose different providers and research them. Start with their websites, read articles about them, and talk to customer support.
- Decide on the characteristics. Every provider offers a slightly different set of features. Identify the ones that are critical to you (such as 24/7 support, enhanced security, or personalization) and select providers that offer them.
- Read reviews. The best way to get to know a VDR provider is to find out what other users say about it. The supplier may claim to have M&A and IPO experience, but it is best to see an honest review that mentions this as evidence.
- Choose a free trial. We do not recommend investing in data room services without trying them. Most providers offer free trials for 1-3 months; so, use this time to try out their features.
It’s never easy to compare virtual data rooms, especially since many of them are very similar, but you can do it with our tips.