Virtual data rooms are becoming a tool frequently used by businesses to make their processes and workflows increasingly digital. Virtual data rooms are revered because they provide a simplified, streamlined and centralized way to manage documents, and they’re also an invaluable asset for completing business deals, including mergers and acquisitions.
It’s important when choosing a virtual data room provider to look at your particular needs, as well as individual offerings and features. It can be a bit of a consuming process to select the best one for your unique requirements, and almost all of the many available companies take a unique approach that can make comparison quite a challenge.
That’s why we put together five tips that can simplify the selection process, at least a bit.
- Consider Security
Security should perhaps be your number one factor when you’re selecting a data room because this is where your most sensitive business information and documents will be stored and shared.
If you choose a data room provider that doesn’t have a track record of staying on top of the most advanced security it can lead to a breach, which could likely lead to losing a deal. Some security features you could look for include customizable DRM, two-factor password authentication and HIPAA and SOC 2 compliance.
- Is There A Way to Try Before You Buy?
Many providers will offer you demos, but there can be discrepancies between what you see in the demo and what actually happens when you’re uploading and working with your own documents.
You may want to check with the providers you’re considering to see if there’s a way to have a more realistic test of functionality with your documents. If they offer free trials, talk to the company representatives to see what level of functionality these tests represent.
- Startup Considerations
Many organizations that require the use of virtual data rooms want to ensure they’re going to improve the efficiency of their workflows, so they don’t want to wait or experience lengthy setup times. When selecting a provider, determine how long it will take to have your data room completely up and running, and whether or not the company provides an account manager or representative who can help you with the set-up process.
- When Is It Accessible?
As we mentioned, the point of a data room is to improve efficiency and speed up processes. Another goal should be convenience. Can you access your data room at any time and from any device? If there’s restrictions on when or where you can access your documents and information stored in your data room, it may be wise to look elsewhere.
- What Level of Customer Support Is Offered?
As with any new software or tech solution, you’re likely to need customer support or troubleshooting assistance at one point or another. Look for a virtual data room provider that has a strong customer support system so that if you do encounter issues, they can be handled promptly.
Launching Your Search
A virtual data room can be a powerful way to manage a variety of aspects of a deal, improving the speed of your processes and your profitability. Before beginning your search, think about the criteria listed above to narrow down the options and choose the right provider.