The key to creating a successful virtual data room is to have a structured and logical file structure, with clear, informative titles for folders. So, users can locate what they need in seconds. It’s also helpful if the documents are organized in a consistent and clear format (e.g. documents that contain text in PDF format and financials in Excel) to make it easier to browse the files and manipulating their contents.
Another important factor is granular permission levels to avoid document leakage and exfiltration. For instance, a group can be divided into access groups depending on their role in due diligence, like “management” and “finance.” In addition to granting permissions based on file type, folder, or a particular file, VDR software can notify admins of all activities taking place within the repository through real-time notifications.
A VDR should also be a logical choice to all users, which includes founders and investors who aren’t technical. The process of searching and navigating should take a matter of seconds and be as easy as navigating a crowded Dropbox or drive. The tool should also be able to work with non-proprietary formats of files and allow for easy collaboration with external parties.
The most powerful VDRs come with advanced features to streamline and simplify critical business processes, such as M&A diligence or the IPO. For instance, a great solution is one that combines project management and the virtual data room into one, along with an effective OCR engine https://windbusinessintelligence.com/boardeffect-portal-your-all-in-one-board-management-solution/ to automatically read PDFs and other documents -an essential aspect for M&A diligence workflows. The best solutions provide 24 hours technical support to ensure that experts can be consulted immediately during critical stages of an acquisition.