A virtual data room is an secure and safe environment for sharing files and documents with different stakeholders during M&A. It lets users review and make comments on documents, communicate with other members, monitor activity and more. Its advantages include a simple interface with strong security and collaboration features and a cost-effective solution in comparison to traditional storage solutions.
In a VDR access is controlled by permissions set at the level of the folder or document. You can restrict the download to PDF versions of documents or the originals with watermarks. Documents can also be scheduled to expire, and you can monitor who downloaded what when. Admins can “virtually” shred a document, or disable downloading rights if needed.
A good virtual data space will also feature an intuitive and adaptable platform that can be adapted to your specific business processes, IT systems, and workflows. It should also support drag-and-drop and customised folder structure, and a thorough search feature. It should also feature an audit trail and a simple-to-use file tagging system to ensure that all actions are documented.
The best open-source virtual data rooms will have an extensible interface to integrate with other tools and applications. It will also provide a range of customization options including the option to customize your own user interface. A powerful security model will guard against insider threats. It will also conduct regular vulnerability scans as well as penetration tests of the infrastructure using an external vendor and ensure that you are protected from attacks that cause denial of service.