VDRs are software products that reduce data breach risk and protect confidential documents throughout the M&A process. Their security toolkit dynamically adapts to changing needs and incorporates features such as multi-factor authentication as well as location restrictions. They also include session timeouts, document watermarking and click trails. These tools safeguard sensitive data against cyber-attacks and boost due diligence efforts.
Many of the top VDR services provide basic file sharing but also include innovative features and security measures adapted to specific industries. Real estate transactions, for example, require the ability to secure store data and plans that relate to building construction, NOCs, insurance documents, mortgage documents and land register entries. It is also essential to share and manage documents with all parties. In addition the investment bankers utilize VDRs to help in the IPO preparation process. In an IPO, they need to provide a substantial amount of documentation with potential investors. The ability to monitor the documents that were accessed by who for what time is vital.
Some vendors provide additional services to facilitate an efficient transaction including onboarding assistance, help centers, and training. These services may be additional but they can accelerate the M&A and increase deal value. It’s important to forecast the functions you’ll require from your VDR and then select a provider that can meet your needs. Otherwise, costly but ineffective features can increase the overall cost and lead to project delays.