Virtual Due Diligence Rooms

Virtual due diligence rooms are cloud-technology-based platforms that facilitate and expedite the deal-making process. By having multiple parties review documents in a centralized online space, they can cut down the time and expense of exchanging physical files or sending emails. Compared to traditional methods, they also provide an efficient and secure method to exchange information.

VDRs are used across a wide range of industries, from financial services to healthcare and IT. They are particularly useful in M&A, capital raising, IPOs and divestitures. They allow legal and investment companies to store, share and access confidential information easily and securely. A virtual due diligence room is more than a simple cloud storage solution. It has many additional features.

A key feature is document versioning. This ensures the most recent version of a particular document is always available. A VDR also stops printing without authorization, which could pose a risk in M&A transactions as well as other transactions that are considered sensitive. The most recent versions of VDRs also include AI features that can increase efficiency and speed up the process of reviewing contracts. DFIN Venue, for example offers a variety automated tools, including auto-indexing or full-text search.

The best VDR for due diligence is knowing what features will meet your particular needs and goals. To avoid spending money on an option that doesn’t meet your needs, search for a solution that has an easy-to-use user interface, as well as built-in support services. Then, take advantage of free trials to see how the software performs in action and ensure that it is up to your expectations.

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