A VDR for buyers and sellers is a secured virtual data storage space where documents can be shared. It is a vital tool for M&A deals, as well as private equity companies and life science businesses that need to share hypersensitive information with partners or customers.
The most effective VDRs have a variety of features that make it easier to navigate the M&A process and increase the chances of closing an agreement. For example, they can let participants review documents at the same time – instead of having what is a transaction monitoring tool to rotate through piles of paper – and can be accessed from laptops, desktops or mobile devices. This helps reduce the time it takes to complete due diligence and can save time and money.
When choosing a VDR provider, consider how your team works and whether it could benefit from additional assistance. If you’re interested in a VDR that has e-Signature features, select one that offers an option to sign natively. Sending draft contracts via email or using an eSignature vendor from a third party increases the risk of the process.
Find a VDR that offers easy-to-use tools for managing access to documents, search and logging. Ensure that the software is able to handle large numbers of files as well as offer fast browsing speeds, and lets you to access documents on multiple devices. Also, choose a vendor with a solid uptime record and excellent customer service. Ideally they will have a dedicated team that can speak your language and respond quickly to any questions or issues.
