Does your business require optimisation, security, and protection of sensitive documents and files? It sounds like a good task for virtual data rooms. Especially, it concerns the tasks and files linked to due diligence work. Lots of small-/medium-/large-scale businesses have already integrated this software, reduced half of the routine tasks among workers, and boosted productivity. However, there are also novices to such tools. This data room review is dedicated to sharing step-by-step instructions on how to pick the best virtual data room in 2021/2022.
The profile of online data room software
Before recommending you any measures to purchase a virtual data room, you have to clearly understand whether it may fit your business particularly. So, virtual data rooms are an advanced and secure online environment in which vast amounts of secret or sensitive files may be securely exchanged outside of a business’s boundaries. Besides, you should know that a VDR is distinct from a corporate extranet because it is primarily intended to securely communicate sensitive documents outside of the corporate firewall.
As for the additional tasks, the business may benefit from data room services when it is engaged in due diligence, particularly in mergers and acquisitions, litigation, bankruptcies, fundraising, and audits. Does it cater to your daily business tasks? If yes, let’s go to the actual step-by-step guidance on how to pick the best virtual data room vendors.
A step-by-step guide to VDR purchase
There is a myriad of VDRs in the market which makes it hard to pick the best. Looking ahead, you should bear in mind the next key criteria: security and compliance, affordability, usability, and dependability. Apart from that do the following.
#1 Prioritize the functionalities and specify your business needs
If you are a business owner, you understand what tasks and responsibilities are on your shoulders. Virtual data room providers ensure to help you allocate hardly all due diligence data with their software. From your side, you should seek solutions that will meet specific security requirements including ISO/IEC 27001:2013 or SOC 1, and include file protection features such as watermarking, restricted viewing, two-factor authentication.
Then, great functionalities may lay in controlling the access. For instance, you can complete an audit trail and access user activity.
#2 Establish your budget
As was said above, lots of VDRs exist, the same as pricing policies for each. First of all, overlook the market, and check the average cost. Secondly, understand how much you are willing to contribute to pay for data room software. On most occasions, pricing is determined by the amount of storage required, the number of team members who will use the program, the features desired by your business, as well as the level of protection required.
Some vendors have flat-rate pricing (a monthly charge). Here is one important tip – do not try to go for expensive solutions if some add-ons are not necessary for your business.
#3 Compare the vendors with a table
You should gather at least 3 data room services to use for your comparison table. Divide the table by Offered Features, Pricing Plan and Flat Rate, Security, and Compliance. Additionally, you should compare all the picked vendors by reading the existing feedback on their software. Try to refer to third-party services where only REAL people leave comments.
#4 Learn about free trial
Fortunately, you can now request a free trial to work with an electronic data room during a fixed timeframe. On most occasions, it is granted to potential customers for 14 days. Test the functionality, check how all the features are activated and what benefits they provide for your due diligence tasks. Beyond that, check how user-friendly navigations and layouts are. If you plan to use software from your mobile gadgets, ensure it is compatible with Android, iOS OS among others.
#5 Test the customer support
Either during your free trial or upon purchasing a virtual data room, you should ensure a vendor offers a professional, 24/7 customer support team. Learn what issues they can address, and how quickly you can have responses on integrations of new features, and so on. By the way, many VDRs (with higher flat rates) provide their clients with a personal project manager who will walk them through the deal to ensure they get the most out of the software.
After all your research is done, you should come up with software that can reduce needless travel and delays caused by couriering papers or interacting with several parties. You should avoid the need for several costly printing providers. Once your transactional work is completed, you literally have a deal bible and DVD archive created from your data room. If you come across the need for additional features within your VDR, you should learn about the integration of adds-on, and their accompanying prices.