A logical file structure and folder titles that are informative and clear is the key to creating a highly effective virtual dataroom. So, users can find what they need within seconds. It also helps that the documents themselves are designed with clear and consistent formats (e.g. Text documents with financials in Excel will make it easier to browse the documents.
Another important factor is granular permission levels that prevent document leakage and exfiltration. For instance, a team can be split into access groups depending on their roles in due diligence, such as “management” and “finance.” In addition to giving permissions based on the type of file, folder, or individual file, VDR software can notify admins of all actions happening within the repository using real-time notifications.
A VDR should also be a logical choice for all users, including founders and aligning IT and business goals via data solutions investors who are not technically minded. The process of searching and navigating the VDR should be simple and take only a few minutes, just like navigating a crowded Dropbox. Additionally, the tool must be able to work with non-proprietary formats of files and allow for a simple collaboration with third parties.
The most efficient VDRs come with advanced features that simplifies and streamlines crucial business processes — like M&A due diligence or the IPO process. A virtual data room that combines project management with a powerful OCR engine is able to automatically scan PDFs and other files. This is a crucial feature in M&A diligence workflows. The most effective solutions also provide 24/7 technical support, so that expert experts can be consulted on-demand when required during crucial transaction phases.