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A Guide to Setting up a Data Room for the First Time
Want to add more efficiency to your business transactions? Wish to improve their security? The best data rooms are ready to help you with this. But purchasing a VDR is not all – you will need to organize its work so that it can bring you the most benefits. How does it all work? Let us explain in our brief blog on VDRs.
What Your Data Room Can Do for You
A virtual data room is a complex but very useful soft that may have various tools. Different types of businesses can profit from the VDRs’ main functions, be it legal companies, bankers, venture capital partners, life science industries, etc. The list of the VDR most essential features includes such points:
- Top-level Security
- Access regulation
- Audit Logs
- Due Diligence Options
- Free trial & Tutorials
- Support 24×7
All this serves to make your deals fast and safe. Thus you and your partners will be able to negotiate and share sensitive info without wasting too much time and cost.
Steps to Integrate the VDR into Your Business
You wish to have an electronic data room in hand but how to get it ready for your business needs then? You may follow the below-stated manual to get started quickly with a VDR.
- Compare virtual data room providers and opt for a suitable one.
Reasonable advice here is to pick data room providers with a strong reputation and experience in the industry. This will be a guarantee of the ability to offer you enough security, useful tools, and prompt support. One more factor to pay attention to is the interface – it should be easy-to-manage, by all means.
- Choose the exact data room type you need
Data room software varies from provider to provider. Moreover, you might need different types of data rooms for different purposes. For instance, M&A transactions require multi-functional data with enough capacity. You will need to upload piles of docs into it. However, when you want to conduct preliminary negotiations with your possible investors or such likes, it will be enough to use a deal room with a smaller number of instruments.
- Structure your data room storage
Your next step is arranging your VDR in a proper way. For example, you may receive a due diligence checklist, that is, your prospective investor sends you a list of papers they would like to examine. You will hit the right path when you make the exact folders with all files indexed according to this list. By doing so, you will create a positive image of your business.
- Set security rules & access permissions
Your online data room software has tools to protect your competitive data from illegal access or hacking. In fact, you can set distinctive rules for each person that will gain access to your papers. Such options as fence-view, watermarks, etc will help you to avoid unauthorized copying and theft. You can change permissions at different stages of your transaction.
- Upload the necessary documentation
When your data room storage is structured, you can proceed with uploading the documentation necessary for the transaction. Be aware that your data room software will allow you quick search, drag-and-drop features, etc.
- Add new users
Your final step is inviting partners to your data room by using the corresponding button. Top-class virtual data rooms will allow you to monitor each user’s activity as well as collect data like their IP, devices, etc.
Now, your VDR is ready for your deal to be closed. If having any problems, be sure to contact the Support Team of your provider.
VDR Main Advantages
In comparison with physical deal rooms, web data room services look and actually are much more effective. You can expect to have the following benefits when conducting your business deals via a VDR:
- Quick preparatory stage and start of the deal;
- Effective negotiations thanks to QA, Due Diligence Checklist, and other options;
- 100% security for your data;
- Cost-effective management (no business trips, no delays, no server’s downtime. etc)
As a result, you will be able to take your company to new heights. You will forget about getting any paper lost or stolen. Your partners will appreciate the well-coordinated work of your business. Thus, a proper VDR will be your teammate that can ensure your success.