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 location virtual due diligence rooms decrease the time and cost of transferring physical documents. They are also more secure and efficient than traditional methods of exchange of information.

VDRs are used extensively in a range of industries from healthcare to financial services. They are particularly useful during M&A, capital raising, IPOs, and divestitures. They allow investment and legal firms to store, share, and access confidential information easily and securely. In contrast to common cloud storage solutions, a virtual due diligence room comes with many additional features that make it more than just storage for files.

Document versioning is a key feature. This ensures that the most current version of a document will always be available to review. A VDR also helps to prevent printing that is not authorized, which can be a risk in M&A transactions and other transactions that are sensitive. The latest versions of VDRs contain AI functions that can boost efficiency and speed up the process of reviewing contracts. DFIN Venue, for example, offers a variety of automation tools such as auto-indexing or full-text searches.

Selecting the right VDR for due diligence requires understanding what features will benefit your specific requirements and goals. Select a system that offers an easy-to-use interface and integrated support services to avoid paying for solutions that don’t meet your requirements. Utilize the free trials to test the software and make sure that it meets your needs.