Data rooms for due diligence

Due diligence is one of the most frequently held business processes, and it can be quite time-consuming and cumbersome especially if the company doesn’t use technologies meant to simplify the workflow. The primary tool every business should implement in their workflow is a secure data room that will allow storing and sharing the information safely and conveniently.

With a virtual data room, due diligence goes smoothly and much quicker. But even without all the benefits this technology brings, it is absolutely vital for businesses in Australia. Since this country is rather remote from the US and Europe, it is very expensive and takes a lot of time to fly down to the potential partner or another third-party to bring the documents and discuss the deal.

Of course, you could use generic cloud storages to share the files and some messenger to discuss details. But this approach has significant drawbacks. First of all, online repositories like Google Drive and Dropbox are not reliable enough to trust them your sensitive corporate information. And numerous cases of hacked accounts only prove this statement.

Also, generic cloud storages lack many collaboration features virtual data rooms have. And messengers can’t replace all the required tools. Moreover, when the company is using several instruments for one deal, and they’re not at least somehow synchronized or integrated, a lot of valuable data gets lost and causes delays.

That’s why data room services are vital for every business, especially in Australia. To prove our point, here are all the benefits of using this technology for due diligence.

Feel completely safe

due diligence data room

As we’ve already mentioned, data room software is much safer than generic cloud storages. Deal room providers use the strongest 265-bit encryption to secure both the repository and data transfer ways. And to offer clients even more protection, vendors implement two-factor authentication that makes the user enter more data than just the login information. It can be a unique code sent via email or SMS upon logging in, fingerprint, or some other way to prove the user’s identity. Thus, it is impossible for hackers to steal the data, even if they know the login information.

With a data room, due diligence is safe even when you share the documents with third-parties. You can choose the level of access they have – from viewing only to the permission to edit and share files. Also, the administrator of the due diligence room can track all the activity of users: what did they do with documents and for how long. It can give the business some useful insights, but additionally, it helps to keep an eye on everyone.

Improve teamwork to accelerate the deal

Users can leave comments on documents and highlight certain information if they want to draw the attention of others to it. Most virtual data rooms will send all users notifications when the file was altered, or a new document was uploaded. It allows everyone to review the changes as quickly as possibly eliminating any delays.

due diligence data room

The virtual due diligence room can be accessed from any location and device as long as the user has an Internet connection available. Therefore, everyone can work on a document at the same time, even if some participants of the process are traveling, which happens often in the modern world.

To help third-parties in understanding the documents and details faster, the company can assemble the Q&A section in advance, gathering all the frequently asked questions and answering them. Also, users can add questions here for the manager to answer them.

Never feel frustrated

With a VDR due diligence is easy not only because of the technology, but thanks to the support team as well. Users can get help 24/7 when they face any issues. Specialists will always guide the customer through the problem and help to solve it quickly. This approach reduces the numbers of delays and makes users feel more confident, especially if this software is new for them.

Also, most virtual data room vendors offer live pieces of training for those who struggle with this technology. It is highly useful for not that tech-savvy members of the team – with the professional help they will understand how to use the deal room in no time.

To give customers even more support, vendors provide them with dedicated managers if needed. They will go through due diligence along with you, help you organize things, and get the most out of this software. Dedicated managers are extremely helpful during the first due diligence held in the data room. When you have a professional at your aid, you feel less stressful. It helps you to focus on the deal, not on the technologies.

So if you’re still not using data rooms for due diligence and other business processes, you should try it. Most providers offer free trials and demos, so you can test the software before buying it.