Online data rooms are platforms where businesses can store and share confidential documents during M&A transactions. These virtual platforms offer admins the ability to grant granular access, security measures like two-factor authentication data encryption, and features to help users to track and manage document activity. They also provide an audit trail so users can track who has looked at documents and what they’ve done with them, and the date they did it.

Most VDRs offer a user-friendly interface and authorized users can access them at any time. Storage capacity and feature sets differ among providers. Make sure the provider you choose has enough space to complete your due diligence process and also that they provide comprehensive technical and product support.

For example, Digify prioritizes security with features such as dynamic watermarking and screen shielding. Digify also encrypts all files and provides a audit trail for every activity in the platform. Digify can also allow users to restrict access virtual data rooms to their IP address and time. These options give administrators more control over their due diligence processes.

A VDR could increase a company’s chances of success in an M&A deal by allowing access to potential investors all over the world. It can also help them negotiate a better deal for the company that they would not otherwise be able to negotiate.

However, having too much information can slow the decision-making particularly in the event that you find it difficult to comprehend. Luckily, PandaDoc can help you simplify your M&A process by linking your online data room to electronic signature software and document creation software. Find out how by booking a demonstration today.