Whether big or small, the goal for any budding or established company is success in their field. In today’s digital age, the opportunities for businesses to find their footing seems endless and growing their client base a gradual, but rewarding process. However, for every success story being reported there could be dozens, if not hundreds, that just don’t quite make the cut in the fast-paced corporate environment.
This could be due to unforeseeable circumstances, bad luck, or poor decisions made early on in the process that could have been avoided. One of those avoidable bad decisions is not opting for a virtual data room to store important documents during difficult company transitions or financial audits.
The most prominent reason any company would use a virtual data room is for the excellent security and data encryption to ensure that any financial or client information remains safe during audits or mergers and acquisitions. Some might feel that partnering with a virtual data room provider is not necessary since there are similar generic versions on the market perfectly equipped to handle these transactions.
While software such as Drop Box is similar to an exclusive virtual data room, it is definitely not as well equipped to provide a high level security and unique features that help simplify and expedite a project towards its completion. You want to ensure that there is 256-bit AES SSL/TLS encryption for data and the ability to customize user permissions. This will ensure all shared information will remain accessible to the users you’ve invited into the room.
A few useful security features to keep in mind when choosing a VDR provider is the option to disable print and download functions of documents as well as the ability to watermark any documents that have been downloaded. This establishes control over the documents you choose to share within the room.
Maintaining a Professional Appearance
When dealing with major clients or financial institutions the last thing you want is to appear unprepared or unprofessional in your endeavours. Much like an ill-fitting suit, the decision to rebuke a virtual data room can send the wrong impression to whomever you are working with and can portray you as disregarding the necessary means for the success of your business.
With a reputable VDR provider, you are illustrating that you care about every user’s security in the room and have put effort towards finding software that will make everyone’s experience uncomplicated and enjoyable. With a virtual data room you are also able to bypass firewalls installed by financial institutions, preventing any issues on their end during the process of an M&A or audit.
The final reason why your business might be struggling without a virtual data room is the lack of efficiency being implemented for routine tasks. An effective VDR provides the user with features that make their projects run smoother and with much more ease than a generic version of the software. Certain providers offer the ability to upload documents directly from email into the data room, perfect for anyone on the go and that doesn’t have constant access to a computer to sign into the platform directly.
Clients respond favorably knowing that the details are taken into consideration prior to an M&A or when exchanging vital information. The compatibility with any document type as well as the ability to view the data from a mobile device is a plus when choosing to access the VDR remotely. As well as the ability to upload folder templates rather than wasting the time creating them from scratch for every room or project opened.
It seems ill-advised to not opt for the advanced capabilities that a virtual data room pricing provides, however it is understandable that smaller companies may be a bit hesitant in making the investment. Although, when in the process of selling of merging company, spending money on a VDR provider that will ensure security and ease is worth it.
Working in collaboration with them to establish what the best features for you and your needs are will ultimately make the process that much simpler. A reputable provider will also ensure that you are given the opportunity to maintain control over what is shared, viewed, and downloaded, ensuring that nothing is leaked without your knowledge.