In the US, things continuously change for businesses. And it is tough to predict anything from market trends to customer needs as the economic climate changes quickly. Electronic data room providers give companies a chance to adapt to changes almost instantly making the corporate data easy to access.
Top Virtual Data Room Providers for 2020
Enjoy a truly versatile and easy to use data room that will supply you with all the tools. If you need perfection — iDeals should be your choice. This data room provider takes security to another level with advanced bank-grade encryption and numerous built-in features that help you protect your corporate data. Also, with iDeals, you will get your hands on collaboration tools that will improve your teamwork and accelerate deals. Choose this provider and you will never want to switch to another.
Decades of experience allow Intralinks to create simple yet efficient data rooms. Join this provider if you value a good well-known name. The cost is a bit higher than the average on the market, but that’s the price to pay for a brand that exists for so long. In general, it’s a decent data room that will provide you with all the basic features you need. But don’t expect too much from Intralinks — it’s an old-school provider.
DataSite by Merrill is a great example of a well-executed simple data room. Nothing extra – only the essential tools that will help you close the deal successfully. The interface is quite simple due to a limited set of features, so you shouldn’t have any issues using the service. Most Merrill clients are using its new product DataSite for due diligence and Mergers and Acquisitions as the set of tools is suited for these processes. However, you can try using it for other purposes.
This is one of the oldest and most experienced providers on the market. Choosing Venue you will enjoy impeccable security and AI at your service. It will help you process contracts and information about potential partners very quickly. The AI extracts the most essential bits so that you don’t waste your time studying the complete document. The tool might seem a little complex, but it’s easy to use once you take your time to understand it.
This is a simple and quite versatile solution that will help you handle the document maintenance. Citrix fits the needs of all industries. It’s a completely cloud-based service, so you won’t need to install anything to get started. Experienced users might consider this provider as too simplistic, but those who have never used a data room will feel quite satisfied with the service. The best thing about Citrix is the way this provider executed the stats on the activity of users.
Those who need the solution solely for Mergers and Acquisitors will find Ansarada quite a good option. This is a data room with a straightforward interface and a set of basic tools. The built-in AI analyzes the activity of a user to bring them the documents they will likely need once they enter a data room. Therefore, Ansarada makes it easier to find the required files and accelerates processes. So despite the lack of advanced features, many firms will find this provider to be convenient.
Brainloop DealRoom is a very handy and easy to use data room that will accelerate your deals. Keeping security as the main focus, this provider will take care of your documents. However, when it comes to features, Brainloop loses the competition. This data room will provide you only with the most basic tools, so you shouldn’t expect anything special from it. Although it’s enough for due diligence and M&A.
This provider initially offered a solution suited for Mergers and Acquisitions. But now the set of features might satisfy the needs of other business processes as well. Yet, there are not too many functions, so the interface remains easy to use. The upload speed is very high, and firms are able to prepare documents very quickly. Thus, any due diligence will be smooth.
If you are a fan of the latest technologies, you will find Box rather interesting. This provider offers a simple interface, high bandwidth, and plenty of fascinating high-tech tools. You can customize your data room as you like and integrate it with other tools. So tech-savvy users will be quite satisfied with Box. However, for some people, this data room might feel overwhelming.
V-Rooms is a great virtual data room solution for small and medium-sized companies that need a tool for convenient document maintenance. If you need a reliable data room you may try Vault Rooms.
Best Way To Online Secure Documents Sharing
The times when document sharing was time-consuming and irritating process are long gone. In the era of the Internet and pervasive dissemination of gadgets, the exchange of the files is extremely easy. Commonly, no one is interested in getting a hard copy of a document: its digital version is equally (or even more) convenient to work with. Indeed, it does not take any physical space, it can be viewed on diverse devices, and a user can store a large volume of information considering a deal or a project in his pocket.
The shift towards online data sharing has not occurred within a few days: it was pretty long transition until the moment when deal-makers realized that it is cheaper and more convenient to exchange the data online. Microsoft Office files and PDF documents came to substitute piles of paper. The need for new instruments for information sharing emerged due to the ever-growing desire of businessmen to escalate their performance: deal-makers become impatient and want to work on several projects simultaneously.
Step Before the M&A deal, the seller can upload all pre-marketing documentation and make it available for potential investors.
Due Diligence Step
During this process, buyers may ask questions about available documents or request additional ones.
The VDR helps merged companies integrate all their departments. Then it serves as a corporate data repository and helps in executive communications.
It means that they have to stay in touch with a few partners that might be located in geographically remote areas, they have to manage large volumes of information and share it with the right partners. Hence, multiple actions have to be executed concurrently and they must be executed fast as sometimes you have minutes or even seconds to share a certain file in order to succeed.
In such conditions the need for highly efficient services becomes evident. After all, it even seems ridiculous to use email to send Microsoft Office files and PDF documents in a course of a large-scale cross-national project. Luckily, contemporary technologies are capable of satisfying the demand for fast and convenient file sharing platform. Generally, potential customers have to make a basic decision if they want to use the free software or if they are ready to pay for a subscription.
Paid virtual data rooms are utilized for secure business data sharing. These services allow businessmen to upload any types of documents containing information on their performance and to share them with selected stakeholders. Virtual data rooms proved to be useful for deal-makers regardless their aims and industries of operation: M&A deals, clinical studies, biotech licensing, fundraising, investment banking, real estate, and numerous other spheres currently benefit from the exploitation of VDRs.
Mergers & Acquisitions
Virtual Data Rooms seem to be the most helpful in a course of M&A transactions. A decent data room simplifies the entire process of interaction between a buyer and a seller and allows both sides to feel safe. Data Rooms prove to be especially useful when it comes to due diligence process. When all the necessary data is uploaded to a virtual data room the potential buyers get an access to it and may take their time examining documents. Moreover, in a contrast to any land-based deal room, a virtual data room allows multiple visitors to work with the files simultaneously. Hence, with the help of Virtual Data Rooms, a seller has a chance to maintain a productive and smooth dialogue with several bidders concurrently and to remain sure that no files would leak, that the process would not be interrupted, and that the deal would bring maximum profit.
Corporate Document Sharing
The larger a company is – the more complex internal communication flow becomes. Virtual data rooms seem to become a solution that may simplify collaboration of employees and that may ensure data security. When the demand for the exchange of certain files arises several options might be applied. However, traditional emails proved to be too vulnerable and too easy to be attacked. In a contrast to a virtual data room, such free services as DropBox and Google Drive cannot guarantee the required level of documents protection. In addition, these vendors have no chance to offer enough customization options to ensure convenience for all the participants of the communication and data exchange process. A virtual data room may play the role of a highly protected venue where all the corporate files can be store and the exploitation of a virtual data room for document sharing guarantees information security. Hence, VDRs become a choice of numerous global corporations and small private enterprise
Law firms face similar problems as other industries do: data security and uninterrupted flow of communication are among their primary concerns. However, they deal with one more dimension of problems as the storage and exchange of information have to meet all the legal standards in order not to compromise the clients. Obviously, it is possible to build an extranet but the opening of a secure data room seems to be cheaper and more efficient. The key advantage of any virtual dataroom is secure access to data and an agile customization: the data room can be adjusted to the needs of a certain client or case. Moreover, virtual data rooms allow law firms to impose different levels of data disclosure and to maintain contacts with multiple parties within one room. With the help of a VDR, it is easy to keep all the files connected to particular cases well-organized and accessible in a short time.
Other common uses
The spheres mentioned above give a brief insight into the list of industries interested in the exploitation of virtual data rooms. And this list seems to be non-exhaustive as almost any deal-maker may find something helpful and beneficial in the use of virtual data rooms. Hence, representatives of fundraising, IPOs, real estate, biotechnological licensing, litigation, clinical studies, investment banking and many other spheres tend to pay attention to VDRs.
Who uses virtual data rooms?
Virtual data rooms may come in handy for everyone who wants to keep the data in a highly protected environment for any deal. However, there are certain industries and spheres which are more interested in secure document sharing than others. In the exampl: investment banks, law firms, startups, etc. need to guarantee the safety of the information, eliminate risks of leakage and misuse.
Life Science Projects
Electronic data room can be set up in a few minutes and it would not take you long time to upload all the necessary Microsoft Office files and other documents. After this stage is complete, you may share your files with anyone you want and it would take a person a few seconds to access the file even if thousands of miles separate you. Moreover, VDRs allow you to work on several projects simultaneously and you have a chance to save a considerable amount of time.
The best providers encrypt both the repository and data transfer ways with the strongest 256-bit encryption to keep hackers away. There is two-factor authentication for users to prevent unauthorized access to the files. Also, most of data room software offers safety features like fence view for discreet reviewing, different levels of access to control the activity of users, data shredder to destroy files instantly, dynamic watermarking for documents, Antivirus Protection, customizable Document Permissions, and many other useful functions that help to share data securely during any deals.
The data room service allows you to work with the documents whenever and wherever you want. In fact, free services provide you with the same possibility but there is a noticeable difference between VDRs and free software in terms of functionality and security level. Virtual data room software gives you more freedom of actions and facilitate your work with diverse tools such as advanced search instruments, convenient word processors, etc.
The need in secure online file sharing instrument is undeniable. The question is which one to choose. The answer depends on the needs, goals, and abilities of a potential user. After all, each type of software has its own peculiarities, advantages, and audience.
Legal due diligence focuses on the legal basis of an M&A transaction. It is one of the safety measures that prevent lawsuits after completing the M&A deal.
Financial due diligence (FDD) focuses on ensuring that the target business will stay on the same level or will perform better than before the deal.
Commercial due diligence focuses on the market and helps to plan the business integration following after the acquisition.
How to Find the Best Virtual Data Room Provider
Today, virtual data rooms do not belong to the luxurious services rarely used by deal-makers. Initially, VDRs were utilized by a limited group of business but, during the last decades, the situation has changed. The importance of data protection becomes more and more evident as new threats for information security emerge. However, the exploitation of data room providers is aimed not exclusively at secure data storage: these services provide users with diverse instruments that simplify the information exchange, internal and external communication.
The evident advantages immanent to secure data room services make big companies and businessmen explore the VDR industry and search for the appealing vendors. As plenty of data room service providers offer their services, such a task proves to be rather challenging. Anyway, our comprehensible algorithm of virtual data room comparison should simplify the selection of a virtual data room provider.
1. Check out what the market can offer you
Make a market research and look through the existing virtual data rooms. First of all, you should evaluate the reputation of the data room services. Expert virtual data room reviews and feedback could help you understand if certain online data room meets your demands and expectations. It is always advisable to cooperate with those providers who have an excellent reputation. For sure, it does not give you 100% guarantee that your data would not be compromised somehow but the chances to experience leakage or breach are miserable.
2. Look through the safety guarantees and tools offered by data rooms
The functionality is a dimension defining the reliability of virtual data room services. Certain industry standards exist and a set of selected functions is expected to be present in the VDR you use. Document security options are among the trait to be evaluated first. You should make sure the protection of files is guaranteed on numerous levels owing to diverse instruments such as encryption, virus scanning, two-step user verification, watermarks, etc. If you suspect the protection system to be of not the highest quality then you should better reconsider your choice and look for a different room.
Also, pay attention to other functions offered by a data room provider. For instance, you might need flexible access settings and an efficient Q&A section for communication with your employees, partners, and customers. Or you might plan to exploit the data room for multiple projects: permission groups option would come in handy. Regular activity tracking would help you monitor what the users do inside virtual data room. Advanced search tools and multiple filters would simplify the work process and let you deal with files quicker. A convenient design and the ability to customize it should be provided. Hence, you should look through the features inherent to certain VDRs, evaluate your own needs, and choose the room that satisfies your requirements.
3. Make comparison
Before purchasing a subscription you should better test the service on your own. Usually, trial versions of VDRs are available for free. It means you’ve got a chance to check out the functionality and convenience of the VDR. You are not supposed to test the entire list services you found as it would be enough to select 3-5 most appealing platforms. After a few days of exploitation, you should be ready to name your favorite service. Also, pay attention to prices as two equally equipped and convenient venues may vary in their cost.
More reasons to use virtual data rooms:
Businesses around the world have to keep up with rapidly changing times. Within only one generation, companies had to adopt utterly new marketing channels and approaches, figure out and implement technologies and compete with the whole globe. That’s something business owners didn’t have to worry about even a couple of decades ago.
And companies in the United States face even more specific and unique challenges. But fortunately, they can be solved with the help of virtual data room software.
It’s hard to predict the future
The management of finances
Small and medium businesses have to handle an enormous number of finance-related processes like reducing costs, financing, profit margins, cash flow, and so on. Of course, all these activities generate numerous documents and sometimes require a third-party specialist to join the processes. With virtual data room solutions, it’s not an issue. Simply upload the files to the repository and invite the financial consultant to the workspace.
The monitoring of the performance
Since the US economic climate changes all the time, it is vital to control how well does the company adapt to new conditions. The best virtual data rooms offer detailed analytics that will help business owners to control the performance of their companies in the real-time mode. Also, reports will give useful insights that improve decision-making.
As the market shifts and technologies evolve, regulations follow the changes. And a company needs to update its documentation accordingly. It is way easier to do with the help of online data room providers. Once your corporate data is online, you can access and edit it whenever it is needed.
Hiring new specialists
Modern US businesses need to have way more extensive staff than a couple of decades ago. But each new employee requires someone to introduce them to the processes and documentation. Using virtual data room service providers, you can simply give new specialist access to the repository and let them study everything on their own.
The age of big data
The virtual data room pricing is affordable, even for small businesses. And the costs you invest in this software will be worth it because the VDR provider will keep all your numerous documents safe and organized. Therefore, you will never experience a data leak that demands a lot of money or any other predicament that happens due to poorly managed data.
All the best virtual data rooms offer round-the-clock support. And that’s a much-needed service because sometimes you need help immediately, especially if you’re in the middle of the deal. If you compare virtual data rooms, you will notice that most of them are US-based. Thus, you won’t have any issues with the support team – they will know all the nuances the US business might face.