The best virtual data rooms have features that make it easier for users to review and access documents. They include a table of contents, drag-and drop capabilities, folder and subfolder structures and search functions. They also have granular file sharing and viewing permissions (e.g., editing only, view only full uploading and downloading, fence view to prevent screen prints and unauthorized viewing, remote data wipe, and much more) to provide greater security.
Another factor to consider is whether a VDR provides advanced functionality, like Q&A and document versioning, to streamline due diligence and keep projects on in the right direction. Some, like FirmRoom go further by offering request management, which allows you to synchronize all communication and diligence requests all in one place, and can be customized for sellers and buyers.
Lastly, a good VDR offers a custom dashboard that displays recent activity and updates to keep everyone updated. It should also have features that speed the process by eliminating bottlenecks, and ensuring uninterrupted distribution. This includes complete lists of all participants, as well as a grouping based on role or involvement in order to speed up the invitations process.
Ultimately, the goal of any data room is to provide all of the data needed to make an agreement while keeping confidential data from falling into the hands of insecure individuals. It is important to keep in mind that there’s a thing as too much data- if you share more data than necessary, investors may be distracted by irrelevant data or make decisions based upon unreliable or incomplete information.