A well-organized file structure and folder titles that are clear and concise is the most important factor in creating an effective virtual dataroom. This way, users can locate what they require in minutes. It’s also helpful to arrange the documents in an organized and consistent format (e.g. text documents in PDF format and financials in Excel) to simplify viewing the files and manipulating their contents.
Granular permission levels are also essential to prevent document leakage and leakage. VDR software allows teams to be divided into groups based on the roles they play in due diligence. For instance, “management” or “finance” can be assigned access.
A VDR should also be easy to use for all users, including investors and founders who may not be tech-savvy. Searching and navigation should take mere minutes and be as easy as navigating a busy Dropbox or drive. Similarly, the tool should support non-proprietary file formats and allow for a simple collaboration with third parties.
The most efficient VDRs come with advanced features to simplify and streamline critical business processes, like M&A diligence or the IPO. A virtual data room that combines project management and a powerful OCR engine is able to automatically read PDFs or other files. This is a crucial feature in M&A diligence workflows. The best solutions provide 24/7 technical support, so that experts can be reached immediately at crucial times during the transaction.
