Virtual Data Room Software Secrets for M&A Due Diligence

There is no room for error in the case of sensitive files that are shared during M&A transactions. Data breaches, miscommunications, and other deal-breaking errors are costly, time-consuming and can cause a snag in an entire transaction. Fortunately, today’s VDR solutions offer exceptional security and function at only a fraction of the price of the older technologies.

The most effective virtual data room platforms are flexible and user-friendly, designed to meet the needs of a particular workflow or transaction. You can customize the virtual data room to include the features and permissions you require while still giving authorized users access to sophisticated due-diligence tools, such as watermarking, role-based security, antivirus scanning, and two-factor authentication.

CapLinked’s hierarchical tag structure, for instance, allows administrators to organize virtual data rooms into sub-categories, based on the nature of the document. This will help speed due diligence. You can also track the number of people who have viewed documents using various reports, including a „heat map” by user group and different charts, showing who’s seen which documents and for the length of time.

Venture capitalists and private equity firms as well as other investors typically look at several deals at once. This requires a large amount of data to be organised. The ability to upload large quantities of documents and then organize them into easily accessed groups and folders helps speed up the due diligence process, allowing you to close more deals in a shorter time.