Virtual data rooms are a great method of sharing information with third parties in due diligence or other M&A transactions. The efficiency of the solution be is contingent on how it is set up and utilized.

Choose a VDR provider that has been developed with serious sharing in mind. It should provide a broad selection of tools that allow users to upload and share large quantities of files. It should also permit administrators to easily build folders and create document indexes. It should also feature advanced search features that makes it easier to find documents. The user should be able to download and print PDF files that include watermarks. Admins should be able to keep track of when documents are downloaded and printed.

When choosing a provider, be sure to consider whether they offer an annual subscription or a one-time transaction. A subscription that is annual gives you more flexibility and lower cost of ownership. It also eliminates the risk of price hikes that could occur during the duration of the contract.

A reliable VDR will work with multiple platforms and browsers including Mac and Linux. It should also be able to work with any file format. Additionally it should be able to modify the look and feel of a virtual data room with customized branding.

Verify that the VDR is fitted with high-quality security features to block unauthorised access. The service provider should, for example, provide multi-factor authentication as well as security impersonation for users. It should also allow administrators to set a session limit, that will automatically end users’ sessions if they’re not in use for a set amount of time.