If companies have to share large amounts of data with a variety of people and stakeholders, a virtual data review is the ideal solution. Modern VDRs are designed for collaboration to be more efficient and smoother. They aid in managing documents, provide granular security, and are equipped with advanced user permissions. They are accessible through desktops, mobile devices and web browsers. They offer professional user interfaces that allows for simple file sharing between multiple participants in different times zones.
VDRs are perfect for M&A due-diligence, because they cut down on the initial costs by removing photocopying, indexing and travel expenses. They can also accelerate the process by allowing a larger and more diverse number of bidders. For life science firms, VDRs enable the sharing of everything from clinical trial data to HIPAA compliance documentation to licensing intellectual property.
Private equity firms and VCs often need to look at various documents when looking at potential investments. While they may be able to meet with executives of companies face to face however, this could be costly and inefficient. Greene states that young associates are more likely to make more mistakes reading text on a screen than when reading printed pages and that the cost of printing and scanning may outweigh the upfront costs of a VDR.
When selecting a VDR businesses must take into consideration their future and current requirements, as well as allowances and pricing plans offered by each provider. They should also test the capabilities, features, ease of use, interface, and security solutions provided by each provider via the free trial.