The how the data room software can empower your financial team to go remote key to creating a powerful virtual data room is to have a well-organized file structure that has clear, informative titles for folders. Users are able to find the information they’re seeking. It is also helpful to arrange the documents in an organized and clear format (e.g. PDF text documents and financials in Excel) to make it easier to read the files as well as manipulating their contents.

Another important aspect is the granularity of permission levels to avoid leakage of documents and exfiltration. For instance, a group can be split into access groups based on their role in due diligence, such as “management” and “finance.” In addition to granting permissions according to the type of file, folder, or individual file, VDR software can notify admins of all actions taking place within the repository through real-time notifications.

A VDR should also be intuitive to all users, which includes founders and investors who aren’t technical. Searching and navigating should take a matter of seconds and be as easy as navigating through a congested Dropbox or drive. The tool should also support non-proprietary formats and facilitate collaboration with third-party companies.

The most robust VDRs come with advanced functions to simplify and streamline key business processes, such as M&A diligence or the IPO. A virtual data room that combines project management with a robust OCR engine can automatically scan PDFs and other files. This is an essential feature in M&A diligence workflows. The best solutions provide 24 hours technical support so that specialists are available at all times during the crucial phases of a transaction.