Virtual data rooms have been utilized to perform due diligence during M&As and other transactions. They increase the security of sharing information, speed up document reviews and help in making decisions. But how do you select the best one to meet your requirements?
Due diligence in the oil and gas sector requires the exchange of well logs, seismic data and other technical documentation. In the case of infrastructure projects, it is essential to share engineering documents between investors and lenders. The energy sector has also tightened its regulations. This means that data exchanges are required for M&A due diligence and project financing.
A good due diligence VDR provider will provide a variety of file formats and offer an easy-to use search option. You should be able to reorder the folders and assign access rights to individual users. It is essential to anticipate the types of documents that will be requested and then create the appropriate folders. It is useful to organize these documents into categories like tax, financial and human resource information.
Due diligence requires a VDR that is not Google Drive or Dropbox. This is because certain sensitive files require to be seen by only a select group of people. Modern VDRs include tools like granular permissions and multi-factor authentication to ensure the security of confidential data and prevent it from falling into the in the wrong hands. VDRs can be accessed from many different devices, allowing stakeholders to review information wherever they happen to be. This feature helps speed up the decision resource making process.