Virtual data rooms are an efficient way of sharing documents with other parties in due diligence and other M&A transactions. The effectiveness of the service will be is contingent on how it is set up and utilized.

Choose a VDR provider that was created with serious sharing in mind. It should offer a variety of tools that permit users to upload and distribute files in bulk. It should also permit administrators to easily build folders and create document indexes. It should have a powerful search tool that enables users to quickly locate documents. The provider should allow users to download and print PDF files that contain watermarks. Administrators should be able to track the time that documents are printed as well as downloaded.

When choosing a vendor consider whether it offers an annual subscription or single-use transaction. An annual subscription provides more flexibility and a lower cost of ownership. It also eliminates any risk of price increases that could occur during the term of the contract.

A good VDR should support a variety of browsers and platforms, including Mac and Linux. It should also be able to work with any file format. It should also be possible to alter a virtual dataroom’s appearance and style using a personalized branding.

Check that the VDR has robust security features to prevent unauthorized access to information. The provider should, for example, offer multi-factor authentication as well as security impersonation for users. Additionally, it should allow administrators to configure a session timeout which will automatically close the user’s session following a specified duration of inactivity.