If you’re a business that’s engaged in mergers and acquisitions, you need a way to negotiate these transactions and share confidential information without the risk of leaks. This is where virtual data rooms come in. A VDR allows sellers to securely share their business data online to interested investors without having to meet them in person. It acts as an online repository that buyers can access at their leisure to view documents and make an informed decision using due diligence.
The popularity of this technology has allowed companies like Imprima to thrive thanks to the virtual data room services they provide. But what should you, as the seller, be looking for from this kind of service?
First and foremost, security is essential. You want to make sure that you’re enlisting the help of a reputable company that uses bank-level encryption to protect your information. The service should also be fully certified for ISO/IEC 27001; this is a globally recognised international security management system. You can learn more about it here.
If you’ll be sharing confidential information with interested buyers overseas, the VDR has to have the relevant legal jurisdiction and be covered by the data protection laws of that respective country.
The technology should run on a resilient web-based platform and have an intuitive interface. This will allow you to upload your documents with minimal effort and organise them in a way that’s easy for the buyers to search for and read. Ensure all your documents are clearly named and organised.
The service should also allow sellers to set custom security restriction. Files can be made read-only, printing and copying can be denied, and viewing time limits can be placed upon specific files. It’s also good to check that the VDR provider can give you detailed reports on how the buyers are interacting with your data. These can reveal how long they are viewing your files and indicate if they are close to making a bid.
If this is your first time using this technology, it’s a good idea to pick a company that provides technical support and online training. Most VDR providers will have a multilingual team to help you at any point during the ongoing transaction.