Investor due diligence is essential to any transaction, and a virtual data room, also known as a virtual data room or VDR, can make this job much easier. Knowing whether or not an investor has consulted, modified or annotated a document, or knowing that he is no longer interested, can make or break a financial transaction. For a start-up that uses a data room for its financial round, having control of all documents in one secure place can free your mind – and that of your investors.
How to Choose a VDR Provider?
Security certified by independent auditors: Take care to study the security ratings and certifications of all candidates. Connected, but without compromising security! Many publishers advertise that their tool integrates with other platforms, but carefully check the security conditions of this integration. It’s easy to integrate with a public email service like Gmail or a software suite like Microsoft Office, but is that really what you want? After all, public messaging systems are in no way secure, and synchronizing your data with other tools or platforms can compromise the security of your solution. Indeed, why choose software or a tool that is supposed to form a protective enclosure around you if it sends your data to a security sieve?
Think about the future. Many smaller vendors offer perfectly safe online data rooms to store documents during a merger/acquisition proceeding or a financial round, but their use stops here. Look for more comprehensive tools that can meet your business needs far beyond your occasional search for a VDR.
A VDR for M&A, Private Equity and More
If virtual data rooms are useful for financial operations, they are also widely used in the daily life of companies such as before the preparation of board meetings, in order to ensure flawless protection of the most sensitive data of the company.
Combined with our flagship product Diligent Boards, our virtual data room solutions Diligent Secure File Sharing and Diligent Secure Meeting Workflow are based on cutting-edge technologies developed by Diligent and Brainloop, both members of the Diligent Group. We thus offer the most secure and complete virtual data rooms on the market. Merger and acquisition projects, board of directors documents, taking minutes, company annual reports, succession plans, don’t wait any longer to protect your most precious data!
The Main Advantages of VDRs
Virtual data rooms or dealrooms are an alternative way for company leaders to store and secure high-level documents that require more security
Beyond the benefits for the environment, dematerialization offers two essential advantages to your team. In the case of a large merger/acquisition or a law firm dealing with a large number of clients and transactions, the cost of paper quickly becomes an obstacle. Thousands of pages are printed, and a single typographical error or last-minute content change can force you to start over and over again. The online data room frees you from the constraints of printing, saving considerable time and labor. Dematerialization is also a way to achieve a better level of security. How many people have ever misplaced their briefcase or legal file? Such a loss jeopardizes your business and can have an insurmountable cost. Virtual data rooms make it possible to restrict someone’s access at any time, whether it’s at the end of their mission for the project or if their device is declared lost.
When you work with many investors or clients, you have to get countless documents signed. With an efficient virtual data room, you easily share information with the right people, collect signatures and validate that all the elements necessary for an agreement are met. Better organization and easier tracking speeds up your business and your business.
Savings: The initial cost of a virtual data room may seem high, but it is important to measure its potential to pay for itself over time. The peace of mind and security of your documents are priceless. On the other hand, your budget can quickly suffer from the proliferation of business trips between your offices and those of the client or investor to present and have documents signed. With a virtual data room, such expenses simply do not exist. Nor is it necessary to print – or reprint – the documents before realizing that they are no longer of any use. Beyond the financial gain, you free up time for your teams and allow them to focus on high value-added missions.
Transparency and Professionalism
It is important to make the daily life of your customers, investors and employees easier. The VDR creates a unique, collaborative and secure environment where everyone works at ease. Transparency is no longer a utopia, and is organized to serve your organization. Better still, the image that your organization sends back to investors and external collaborators – dynamic, up-to-date, structured – can prove to be very profitable economically.
Benefits of Diligent Corporation
Diligent Corporation is the global leader and pioneer in modern governance tools. Every day, we help more than 16,000 companies with their security and compliance initiatives. As in a virtual data room, the information exchanged by the members of a board of directors is confidential and must be secure. Diligent allows you, through a suite of intuitive, secure and collaborative tools, to control all your sensitive data, anywhere and anytime. Contact our team to learn more about our solutions.