M&A deals are among the most time-demanding in the business realm. They are commonly connected with storage and sharing of large volumes of undercover corporate documents that have to be analyzed in-depth before the deal begins: investor, buyer, client or any other representative of the groups of interest is supposed to possess all the information on what is happening in the company he has an opportunity to work with. Thus, the organization has an obligation to provide its stakeholders with all the demanded files and with the space where they have an opportunity to investigate the information. In the epoch of pervasive digitalization, the most justified and logical solution for information storing and investigation is a virtual data room – digital repository for documents which is open for an access all the time worldwide.

Virtual repositories are particularly convenient when it comes to due diligence. As due diligence proved to be rather time-consuming and troublesome process, those involved in the project are commonly interested in passing this milestone of the M&A as soon as possible. As for virtual-data-room.org mechanism and the method to carry through a fast business examination with the most effectual consequence But, negligent attitude towards crucial data examination may have sudden and harmful results. It means that, a prospective buyer is more than interested in well-planned due diligence course. VDRs are equipped with a wide range of functions that are to facilitate due diligence in particular and the business conduct in general. Selected main tools virtual rooms offer to enhance due diligence are named below.

Advanced safety system

Throughout merger and acquisition deals, certain secret documents have to be shared with the prospective buyers. That is why, the both sides of the transaction are concerned about keeping the documents in the most fenced environment that can be thought out. Decent providers provide their clients with virtual platforms that are provided with a military-level protection system: the files are protected from destruction, misuse, leakage, etc. The integral protection is always provided by such features as 256-bit data encryption, 2-step verification process, dynamic watermarks, firewalls, virus scanning, “fence view” option, regular backups, etc. – all the mentioned features are aimed at guaranteeing protection to the inside corporate data.

Permission clusters

During in-depth analysis of the documents not everyone among the room users can work with all the files and documents: a room should let the data room owner to differentiate VDR visitors into permission clusters. Such groups offer a right to set up the level of data disclosure and to regulate the access to the files. Thus, the room administrator is the only one to control who can work with what and how long for inside a virtual room.

Audit reports

Advanced data rooms provide their owners with an activity tracking function – the function that gives a chance to monitor all the actions of all the identified users inside the data room. Continual audit reports provide the room owners with the data on who logged into the data room, when, how much time for, which files were worked with, saved, uploaded, etc. Due to activity tracking option the VDR administrators are able to search out the most intent participants of the project and to make sure that in a case of any possible problems with the colleagues or prospective partners the report may be utilized as evidence.

User-friendly interface

Due diligence is a rather intricate and exhausting process. Therefore, the simplicity of utilization is among the demanded traits that are supposed to be offered by a platform provider: deal-makers appreciate simple and comfortable virtual platforms that may be worked with without any special preparation. High-quality search system together with filtering features such a search by uploading date, keywords, file names etc. speed up the work inside the virtual data room. The integration with Microsoft office means that the VDR visitors have a possibility to work with Word, Excel, and PowerPoint documents and are not supposed to convert them. These tools help VDR visitors to concentrate on due diligence. Also, development of the mobile application accelerates the data examination noticeably as all the documents are synchronized on all the devices so that the all those involved in the deal are allowed to browse the data whenever and wherever it is convenient for them.