Physical paper data rooms have given way to online, virtual data rooms (VDR). Demand for VDR’s continue to rise as dealmakers push to quickly and efficiently complete more deals. VDR’s increase transaction efficiency, and satisfy numerous use cases including M&A, due diligence, investor reporting, capital raising, merger integration, pre-IPO collaborative work, and data storage.
Demand has driven supply. As more VDR providers join the market, the question becomes: what are the factors to consider when selecting a VDR?
1) Complete Your Due Diligence – Look into the VDR provider to make sure they have a good track record of quality service and a proven technology.
2) Ease of Use – Confirm the VDR supports industry standards and works with universally accepted data formats. The VDR should apply modern design principles and be compatible with common devices and operating systems such as iPads, iPhones, PCs, and Macs (shameless plug, CapLinked is the only solution that works app-free on iPads and smartphones). Additionally, determine how quickly the VDR takes to get set up and running.
3) Intuitive Interface – Search for a simple and straightforward design that is easy to navigate and does not require excessive training. Clean design is key in keeping support calls to a minimum. Flexibility matters as no two deals are the same.
4) Security – A VDR providers’ technical capabilities as well as their experience with sensitive and confidential information is paramount. Providers should be SAS70 Type II/SSAE16 Type II certified, which high performance data backup, database replication, and the ability to prevent data leaks. External audits must be a requirement.
5) Control – Admins need real time analytics to maintain oversight of sensitive documents. Permission, workflow and collaboration management should be built into any VDR solution you are analyzing.
6) Cost Effectiveness – Are you getting good value? Many providers are known for bait-and-switch pricing based on page count and GB storage. Find out if providers offer clear flat pricing or a subscription fee.
7) Customization – (another shameless plug) Does the VDR provider offer customization, or is it rigid? CapLinked is the only player in the space that offers custom development options tailored to your organization’s workflow.
Caplinked meets all of the above guidelines and provides a fully customizable platform with flexible pricing that allows for complete control over the deal process. Connect with us today for a personal demo.