Using an Open Source Virtual Data Room for Due Diligence

A modern VDR is not just beneficial to clients as well as advisors and their team. For advisors who are used to working with older bulky systems, a quick look of modern VDR can make the entire due diligence process more simple and efficient. For instance, features like “view as” and easy to use user permissions, a search function that permits more specific searches and a simple navigate branded interfaces are a few of the more important features found on many modern systems.

It’s also essential to find an online vendor that has an efficient file system that has different levels of permissions and document version control. This means that users are able to find what they’re looking for easily, instead of looking through a crowded Dropbox or drive. Other features that help with due diligence include a Q&A tool that allows users to get in touch with each others and avoid contacting questions through emails, which could be misinterpreted or missed in the flurry of emails that all buyers receive.

The ability to create workspaces and folders for projects and track activities with detailed audit trails, and restrict access to view helps ensure an extremely high degree of transparency throughout a crucial transaction. Watermarking, fence views encryption, and 2-factor authentication are just a few options to protect and secure documents. Many VDR providers provide a free trial to customers so they can get a feel for how the system actually works. They also offer an extensive demo of the software if needed.

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