Over the past decade, virtual data rooms have become a standard tool during due diligence in M&A and other business processes. They enhance the security of information sharing, speed up document review and make it easier to make decisions. How do you pick the right one for your company?
In the oil and gas industry, due diligence requires the exchange of seismic data well logs, seismic data, and other technical documentation. In infrastructure projects it is important to share engineering files between investors and lenders. In addition the energy industry has heightened regulatory standards, which means that data must be shared for M&A due diligence and project financing.
A good due diligence VDR will work with a variety of file formats, and offer the option of searching that is user-friendly. It should also be able to change the order of folders and assign access rights for users. It is essential to anticipate what documents will be requested and create appropriate folders. It is beneficial to categorize these documents into categories such as financial, human resources and tax-related information.
Due diligence requires the use of a VDR that is not Google Drive or Dropbox. This is because certain sensitive files need to be viewed by the selected group of users. Modern VDRs feature tools like granular permissions and multi-factor authentication to keep confidential data secure and to prevent it from falling into the wrong hands. VDRs can be accessed from a variety of devices, allowing employees to review information wherever they are. This feature significantly speeds up the decision-making process.