The purpose of a virtual data room is to make the exchange of information between parties as easy as possible. It’s also supposed to be secure, but if you don’t choose the right one, it could put your deal in jeopardy. A virtual data room that doesn’t meet your needs can waste time and money, or even lead to lost opportunities for success because users aren’t able to quickly access what they need. Here are five ways you can maximize your return on investment with a VDR.
Make sure you are getting the functionality you need to support your transactions
Before you can use a virtual data room to support your transactions, you need to understand exactly how it will help you. It’s important not just for understanding the technical aspects but also for knowing what information needs to be shared and when. Talk with your transaction team about their process and find out what hurdles they face in completing each step. This will help you determine whether a virtual data room is right for your organization—and if so, what features would most benefit them.
First, you need to make sure it can support your transaction processes. Once you’ve identified which areas are most critical in completing the deal, it’s time to start looking at vendors that offer VDRs with those features built-in or available as part of an add-on service package such as backup storage. You don’t want to spend money on something that doesn’t work well with your existing infrastructure because this could create authentication issues or other problems down the road—both of which could end up costing even more money and time than originally anticipated.
You should also ask your potential VDR provider questions before committing. Before signing up for anything too permanent, like paying monthly fees, consider asking questions about how things work during trial periods first so there aren’t any surprises later on down the road when your clients start using their new platform regularly. Checking out competitor offerings may also give you some insight into potential pitfalls involved within certain features offered by different vendors
Ensure that your VDR can support the size of the largest deal you expect to handle
The size of the largest deal you expect to handle is the single most important factor in determining which VDR is right for you. It’s important to measure this value accurately, because if your VDR cannot support this number, then it will be useless as a tool in your business.
To begin measuring the size of your largest deal, start by taking stock of your current situation by looking at data from recent past deals and comparing them with how many resources (time and money) were required for each one. This will give you an idea about what type of resource requirements are typical for deals done on average at your company.
Next, try to estimate how much larger these typical transactions might become over time as new opportunities arise or existing ones expand through additional phases, such as due diligence or contract negotiation. Finally, compare these estimates against what capabilities are available within various types of virtual data rooms on the market today: some offer more advanced options than others in terms of features like shared calendars and collaboration tools; others limit access to only those who pay extra fees per month—so choose wisely.
Use a VDR provider with high-security standards
When choosing a virtual data room provider, it’s important to consider security. Here are some considerations:
- Check that the VDR uses the latest security features, including multi-factor authentication options and encrypted files.
- Ensure that the VDR has a good reputation for security—is it PCI compliant? Does it meet HIPAA requirements? Does it use two-factor authentication and 256-bit data encryption? These are all signs of strong protection.
- Ask about other features provided by the VDR, such as monitoring systems or 24/7 customer support. These may be indications of how much thought has been put into overall customer satisfaction and convenience.
Do not wait for an upcoming transaction to conduct training on your new VDR
It’s a good idea to start training in your virtual data room well before you need it. It’s true that the closer you are to an upcoming transaction, the more likely you’ll be using your VDR in its optimal form. However, it’s also true that the less time there is between then and now, the harder it may be for everyone involved in a deal—that is, not just those who have been trained but also those who haven’t—to make sense of things quickly enough for everybody involved in the deal.
If you’re considering implementing a new VDR system or upgrading an older one, don’t wait until everything else is perfect before beginning training sessions. This can lead to problems later when people need quick answers and aren’t familiar enough with how everything works yet or even know how they should go about familarizing themselves with them.
Do not choose a VDR that forces you to change your process to use it
It’s important to keep in mind that the goal of a virtual data room is to make your workflow easier and more effective, not force you to change your process to use it. If you’re looking for an intuitive interface, one that can easily be integrated with other systems, or even one that’s easy to use—and there are plenty of those options out there—you should consider them.
Conclusion
There is a lot of hype around virtual data rooms, but they are not right for every company. If you are interested in learning more about how VDRs can help your business, it is recommended that you consult with an expert who can evaluate your current workflow and provide recommendations based on that information.
