A VDR is a tool that lets anyone work effectively and safely, whether they are C-level executives involved in M&A transactions, HR departments in charge of archiving employee records or internal employees that need to share data and files with contractors. This is particularly applicable to companies whose whole existence and success is dependent on the security of their valuable intellectual property (IP) and sensitive data.
The best VDR solution and document management software offers an array of powerful features that makes the due diligence process as well as the dealmaking process efficient and smooth. They include document indexing and search capabilities based upon metadata and text. There are also simple tools to create and manage the folders and documents, with features like auto-renumbering as well as infinite scrolling. Other features to look for include an effective activity tracker and document versioning.
A well-designed folder structure, consistent naming and access rights are crucial to ensure that a project or deal runs smoothly. A reliable VDR will have the capability to define granular permissions for folders and documents based on the roles and responsibilities. Additionally the VDR will provide statistics on who has viewed or downloaded each document.
Lastly, the best VDRs will ensure that all sensitive data is encrypted when stored in storage as well as when it is in transit. This is a must for ensuring compliance with data privacy regulations and protecting against any unauthorized access.