A data room is a safe protected digital environment that simplifies complex transactions and helps legal teams effectively manage due diligence procedures. Private equity, business dealmakers and venture funds, law firms and companies that are seeking to sell make use of it. When conducting M&A deals, it is vital that all parties have access to the same documents to be able to conduct a thorough due diligence.

The best virtual data room software comes with extensive tools to ensure that all required due diligence instruments are accessible. A good VDR, for example, can index all uploaded folders and files, making them easily searchable by filters. It can also synchronize desktop, shared folders FTP, and enterprise storage for files to the data room, and can connect to internal content management systems.

Permission settings are another important aspect to look out for when choosing the best VDR. A leading solution allows users to configure specific permissions that permit users to download and view certain folders or documents. It can also going paperless be configured with watermarks that show the user’s name as well as their IP address and date of access, to deter theft of documents or illegal sharing.

A reliable virtual data room also supports a wide variety of document formats and can be accessed via all major browsers and mobile devices. It is also able to secure every downloaded or opened document, stopping any modifications to the data. It is possible to export documents as archives from the VDR, so that they can be used in future due diligence procedures.