Virtual Data Room Software Secrets for M&A Due Diligence

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When it comes down to the sensitive files that are shared in M&A transactions, there are no margins for error. Data breaches, miscommunications and other blunders in deals can be costly and time-consuming and can disrupt an entire transaction. Fortunately, today’s VDR solutions offer superior security and functionality at just a fraction of the cost of traditional technologies.

The best virtual data rooms platforms are scalable and user-friendly, designed to meet the specific requirements of a specific business workflow or transaction. This means you can tailor the virtual data room with the exact permissions and features you require, while giving authorized users access to powerful due diligence tools, such as watermarking and role-based security, as well as virus scanning and two-factor verifications.

CapLinked’s hierarchical tag system for example, allows admins to arrange virtual data rooms into sub-categories, based on the nature of the document. This will help speed due diligence. You can also monitor document viewing activity with various reports, including a “heat map” by user group and various charts, showing who has looked at which documents, and for how long.

Venture capitalists companies, private equity firms, and other investors often look at multiple deals simultaneously. This requires a large amount of information to be organised. The ability to upload documents in bulk and arrange them into easily accessible folders and groups speeds the due diligence process. This allows you to close more transactions in a shorter amount of time.