A virtual dataroom provides the security and safety of a space to share files and documents during M&A with multiple stakeholders. It allows users to review and comment on documents, exchange information with other members, monitor activity, and much more. Its advantages include a simple interface with robust security and collaboration capabilities, and a low cost as compared to traditional storage options.
In the case of a VDR access is controlled by permissions that are set at the level of the document or folder. You can restrict the download to PDF versions of documents, or the originals with watermarks. Documents can also be scheduled to expire, and you can track who downloaded what and when. Admins can “virtually” shred a document, or disable downloading rights if needed.
A well-designed virtual dataroom will also have an intuitive platform that is customizable and can be tailored to suit your business processes as well as IT systems and workflows. It should also support drag-and drop uploading, and allow the creation of custom folder structures as well as a thorough search feature. It should also include an audit trail, as well as a straightforward tag feature for files to ensure that all actions are documented.
The most effective open-source virtual data rooms have an extensible interface for integration with other tools and applications. It will also come with various customization options, including the ability to customize your own user interface. A strong security model can guard against insider threats. It will also conduct regular vulnerability scans and penetration tests for infrastructure with an outside vendor and ensure that you are protected from attacks involving denial of services.