Virtual due diligence rooms are cloud-technology-based platforms that facilitate and expedite the deal-making process. In allowing multiple parties review documents simultaneously in a central online space, virtual due diligence rooms can cut down the time and cost of sharing physical documents. They are also more secure and efficient than traditional methods of exchanging information.

VDRs are widely used in many different industries, from financial services to healthcare and IT. They are particularly useful during M&A, capital raising, IPOs and divestitures. They allow law firms and investment companies to store, share and access private information easily and securely. As opposed to typical cloud storage options, a virtual due diligence space comes with numerous additional features that are more than an archive for files.

One of the most important features is document versioning. This ensures that the most current version of a document remains accessible to review. A VDR is additionally designed to prevent unauthorized printing, which can be a major risk for M&A deals and other sensitive transactions. The latest versions of VDRs also come with AI functions that can boost efficiency and speed up review of contracts. DFIN Venue, for example has a variety of automated tools, including auto-indexing, or full-text search.

Selecting the right VDR for due diligence is knowing the features that will benefit your specific goals and needs. Find a platform with an easy-to-use interface and integrated support services to avoid spending money on solutions that do not meet your needs. Utilize the trial period to try the software and ensure that it meets your needs.

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