How to close deals faster with data room software

As a deal progresses, the stages become more and more complex and company executives need to see the whole picture. Fortunately, with the help of modern technology, this is quite possible, virtual data room improves the management of documents, users, and the overall transaction process, it improves communication saves time and money, allows you to perform almost all activities remotely, and increases security. In this article, we’ll explain how the data room helps speed up your transactions. 

What is a virtual data room? 

A virtual data room is a unique digital space that serves as a repository for a company’s sensitive data, as well as enabling its secure sharing and collaboration. Nowadays, data rooms can be used in almost all fields, commercial and non-profit organizations, government, and medical institutions. The purposes of VDRs can also vary, while in the past they were mainly used for M&A transactions, now their applications are very diverse. 

Nevertheless, VDRs for M&A and due diligence are still among the most popular data rooms, because they streamline and accelerate the time-consuming transaction process with versatile and useful features and a high level of security. 

Virtual data room vs. physical data room 

You may still remember how it used to be: huge leased buildings with a huge pile of valuable data were guarded by CCTV cameras and the strictest 24/7 security. Both parties would arrive at the appointed time and begin a detailed examination of the documents, then leave and come back the next day, and this was repeated over and over again until the potential clients were convinced of the integrity and transparency of your company’s scheme. This all entailed a lot of expense, both money and time, paper documents could get lost or damaged, data leakage also hung menace during such processes. 

But with the advent of the Internet, data room software was able not only to replace physical storage but also greatly improve it. Now many processes are simplified and automated. Costs have decreased dramatically because you do not have to pay for rent, employees’ salaries, and consumables, and now you can manage all the time you save much more efficiently. 

How does VDR help speed up the transaction process?

Below we take a look at the main benefits of VDR for dealmakers that help you move forward and close deals quickly:

  • Data rooms help you organize all the information within the space more easily – VDRs involve a large volume of documents during a deal, so VDRs provide a bulk upload and drag-and-drop feature so that entering documents into the system doesn’t take too long. Also, data rooms use automatic indexing and document formatting functions for the right type so that you don’t have to do it manually (some spaces just support multiple file types)
  • Higher security – this helps you not take risks and worry about the integrity of your files. When you allow other users to access your documents, you can control their visibility and user interaction with them, for example, you can disable forwarding, copying, or printing, which prevents data leaks. Watermarks and non-disclosure agreements are another way to protect sensitive documents
  • Traceability of actions – you can see the activity of each user in the program and the document, this will help you stay informed and help correct errors if they occur
  • Flexibility and ease of access – potential customers and other stakeholders can now access the information they need, when and where they need it. Data rooms support any type of device or OS to make the due diligence process seamless and efficient