Due diligence is a vital aspect of any deal, as it lets potential investors review all the facts. It could also involve sifting through thousands of highly confidential documents. It can also be a security risk to your company. A virtual dataroom offers an online platform for sharing and securing documents.
A virtual data room can help you to evaluate your business and its value. It can also accelerate the process that could otherwise drag on, or even fail. It allows you to reach a wider pool of investors, and eventually locate the right one.
In the past, companies would keep sensitive documents and data in a special area, which was then made available to potential investors. This was known as an investor dataroom, or a data room for due diligence. Virtual due diligence has replaced physical rooms with the advent of the Internet.
Selecting the right virtual data storage space for your due diligence process depends on what you want it for. You require a secure location to upload and store your documents, and you need an easy-to-use interface for accessing them. It also needs to be affordable so that you are able to keep it in use for future deals.
To make the process easier, look for a virtual data room that offers pre-made due diligence request templates and a powerful search engine and automatic indexing, customizable upload of folder structures monitors user activity, customizing tools, audit trails and much more. You should also select a virtual data space that has an integrated Q&A module which allows you to centralize all communications and documentation in a single location.