Virtual data rooms are an efficient way to share documents with third parties during due diligence and other M&A transactions. However, how effective the solution is will depend on how well it’s configured and utilized.

Choose a VDR provider that has been developed with serious sharing in mind. It should offer a broad variety of tools that allow users to upload and share documents in bulk. It should also allow administrators to build folders easily and create document indexes. It should also feature an advanced search feature which helps users locate documents. Ideally, the provider should enable users to print documents and download PDF documents with watermarks. Admins should be able to monitor the discover this time when documents are printed and downloaded.

When choosing a vendor think about whether it has an annual subscription or a one-time transaction. A subscription that is annually renewed provides more flexibility and lower ownership costs. It also eliminates the risk of sudden price increases over the life of the contract.

A quality VDR can be compatible with multiple browsers and platforms including Mac and Linux. It must be able to handle any format of file. It should also be possible to personalize a virtual room’s appearance and style using a customized branding.

Verify that the VDR is equipped with strong security features to prevent unauthorized access. For example, the provider should provide multi-factor authentication and user security impersonation. Additionally administrators should be able to set a session timeout that will shut down the user’s session upon a specified duration of inactivity.