In this article, we will discuss the functionality of using Virtual Data Room and analyze the best Data Room services.
Virtual data room – a professional approach to Due Diligence
Virtual Data Room (VDR) is an invention in the world of modern technologies. It is a service, which solves the problem of convenient and fast synchronization of information on all devices of one or more users. Whether it’s a smartphone, home, or work computer, you always have access to photos, projects, and files.
Virtual Data Room is widely used during the Due Diligence process for the following purposes:
- Information disclosure during the preparation period for equity transactions: use Diligence online, simultaneous access to documentation for all parties involved in the transaction
- Financial restructuring after the M&A process: working with the reporting documentation of merging companies to combine financial systems.
- Using VDR to prepare for a dual-track deal: VDR is set up for potential bidders (from English Bidder: a. Bidder; b. Buyer, firm negotiating a purchase;) when looking for a strategic investor, and for underwriters when entering an IPO Data storage in a corporate vault: one safe place for all your critical business.
Data room is a safe tool for your business transmissions
Data encryption in VDR includes the next points:
- 1024-bit encryption for data transmission
- SSL (Secure Sockets Layer) based on 128-bit encryption – a secure channel that mixes data, protecting it from unauthorized access during the Internet session.
- Secure dynamic code is used to access each document.
- The viewed documents do not leave magnetic traces on the user’s computer.
- The document database is encrypted and even the technical support personnel cannot access the passwords.
Besides, access to the Virtual Room is carried out only through invitations sent by the system to potential users. Only authorized parties can receive these invitations. All user actions are monitored, and if an unauthorized entry is diagnosed, the system automatically blocks access from these IP addresses. The owner of the transaction can easily manage the activities of users, using the hierarchy of rights of categories of users in relation to certain documents. All passwords are encoded and stored in a database, which in turn is mixed. Password requirements include a minimum number of characters and the required password change at regular intervals. The application reporting engine provides accurate auditing of user sessions and activities.
Best data room services
Among the most commonly used VDR in the marketplace are the following options:
- Vaulterix
- Firmex
- Intralinks
- MerillDatasite
- Citrix ShareFile
- iDeals
Vaulterix Virtual Data Room – allows you to securely store and provide access to employees and external users to company data, restricts the ability to work with documents only in the browser. Produce marking documents and protect the contents of files from unauthorized attempts to take pictures screen, copy text, and output the document to printing.
- Reduction of incidents related to leakage and compromising company data;
- Reduced investigation costs incidents – the history of the work of each employee with each separate document;
- Managing access to company data, where whatever they are (DRM). Possibility of revocation previously granted rights;
- Possibility of automatic marking documents loaded into the system.