Choosing a data room for due diligence is important step which can get a bit complicated sometimes: despite the considerable amount of available options, it is really difficult to find the best software for your project requirements.
We have compounded this selection guide and addressed some of the most frequently asked questions to help you in choosing the right due diligence data room.
The industry determines possible use cases, features, workflows and compliance policies that due diligence process is required to support, so be prepared with the relevant questions when talking to your prospective vendor.
Whether you are in retail banking, stock brokerage or insurance business, you would need to go through due diligence process in case of an M&A deal, investment raising, restructuring or bankruptcy. Financial industry is strongly regulated and your company must comply with some specific regulations. For instance, you may need to set up a data room for reporting to regulatory bodies such as FINRA if your company operates in the US. It is important to make sure that the platform you select is compliant with the industry standards.
In the biotech industry, virtual data room is often used to assist with due diligence of R&D projects such as clinical trials or licensing of a biotech product. Remaining control over intellectual property and personal health records by keeping due diligence information safe is a critical challenge to handle. This leads you to shorten the list of potential data room providers by those who are compliant with local regulations such as HIPAA.
The Oil&Gas part of the industry is now becoming more and more consolidated and that also tightens due diligence requirements. Typical Oil&Gas projects include a huge amount of seismic data and well logs transferred during due diligence process, so it is important to make sure the platform you choose can support that kind of file formats. Renewable energy is another fast-growing sub-sector with a huge variety of investment opportunities. No matter whether it is a capital raising, licensing or a merger deal - a data room for your project needs to be easy and quick to set up in order to help run your project at the fastest pace.
Legal advisers often have to deal with M&A transactions, consulting either buy-side or sell-side of a project. Some legal companies can be involved in numerous projects, dealing with hundreds of clients simultaneously, so it is important for them to have a way to keep their records safe and organized. With a robust Q&A module, you can save your time by executing all communications in one place of your virtual data room. And giving professional look by customizing a data room with your corporate identity is another advantage over other common cloud solutions.
There has been a significant raise of IT industry during the last decade that led to increased amount of M&A, venture capital deals and IPOs. There are millions IT startups raising capital every day and none of them would want to miss a chance to get funded because of the complexity of platform in use. In such competitive environment, there is a need for easy-to-use and plugin-free data room for smooth due diligence processes.
In this industry, it is often a case when an online data room is used to manage your project finance documents. Most construction and building projects are long-term and require constant interactions with investors, banks and other lending institutions, so the ability to share securely both financial and engineering data is crucial in this case. It is also worth taking into account that not all data room providers support Non-Office file types.
Depending on which aspect of company’s assets needs to be examined and what are the objectives, there are different types of due diligence that can be performed. Every industry has specific standards that require documents to be structured in a particular way, and setting up a data room index helps to keep your data room content organized.
The main purpose of this one is to investigate the financial performance of a target company, what mainly referrers to checking balance sheets and supporting financial documentations.
Legal due diligence aims to make sure that a target company is currently not in the stage of a law-suit or has any risky legal liabilities.
IT due diligence determines whether IT spending is at the level appropriate to the size of the company and helps to meet planned growth projections.
Commercial due diligence helps to identify the position of the company within the industry it operates and potential opportunities basing on the overall attractiveness of the industry and long-term commercial prospects.
Financial statements, tax returns and audits – that’s the typical example of the documents that are usually asked to be provided during tax due diligence which is to identify current and potential tax liabilities of a company.
Operational due diligence analyzes manufacturing process, supply chain and distribution in order to uncover any possible capital risks.
Don’t worry, we know that getting to the core could be nerve wracking, so this is our FAQ section for you to help you get your head around it.
While using a virtual data room, you can invite users simply by typing their e-mails and sending them invitations. With iDeals Virtual Data Room you can always be reassured that your invitations are delivered: our application checks whether a user has received the invitation or not and sends you a notification in case the invitation has not been delivered; it also gives you hints you about possible spelling mistakes when you are typing e-mail address.
Most modern platforms do not require any extra software, however, there are some older versions of virtual data rooms that still need plugins. Some corporate IT departments forbid employees to install additional software on their company computers for security purposes, so it’s worth checking what kind of security policy is applied at your company. Alternatively, you can choose a plugin- free and easy to deploy solution such as iDeals Virtual Data Room that doesn’t require any training to use it.
There is a possibility to configure a granular access for the uploaded documents by setting up different levels of access for various groups of users. iDeals Virtual Data Room also allows you to set up two different levels of access for Excel documents (restricted viewing without formulas, secure viewing with or without formulas, or secure viewing and manipulating spreadsheets) and eight levels of access for PDF documents (Set Upload, Download original, Download PDF, Print, Download encrypted Documents, View, Fence View and restrict permissions). We always consider security and privacy as our top priority and with iDeals Virtual Data Room, you can always be sure that your documents are reliably protected.
With the help of full audit trails implemented in iDeals Virtual Data Room, you can always check the amount of documents reviewed by users. On the colorful “heat map”, every single document is filled with a specific color with the relevant percentage ratio which reflects the amount of pages that have been viewed by a certain user. This could help to understand the stage of your due diligence progress as well as the area of interest of your perspective partners.
Depending upon the industry, there might be required documents of specific formats to be uploaded to a data room while some compliance regulations must also be met. The most important goal of due diligence process is to exchange confidential information in the fastest and safest way where technology plays a crucial role. So having a list of requirements and pre-setup index templates can help to save a lot of time and keep your data room workspace organized. iDeals has assisted with thousands due diligence projects and provides professional due diligence data room indexes for various industries.
Customizing data room with your company’s logo and brand colors gives it professional and unique look: this is a must have feature for every virtual data room platform nowadays. iDeals Virtual Data Room also gives you a possiblity to apply your own color schemes and logo that can be seen both in your data room and in the invitation emails you are sending.
Most providers state that they provide a 24/7 support but it is important to make sure that all performance standards are defined in service-level agreement (SLA). iDeals Customer Support team guarantees immediate response via phone or chat and 15 minutes response time via e-mail, however, more than 93% of our e-mail requests are answered just in 5 minutes. Our 24/7 customer support team is always happy to talk to our clients in English, German, Spanish, Portuguese, Russian, Turkish, Chinese and Japanese languages.
Most data room providers use document encryption which is an industry standard nowadays. In addition to multilayered data encryption, there are some extra security features that are implemented in iDeals Virtual Data Room: “Fence View” prevents documents from photographing and in combination with dynamic watermarks provides the most reliable protection from unauthorized copying. You can change the access level of any user anytime.
When it comes to due diligence, security becomes one of the most important aspects, so it is could be strongly advised to check if a data room provider is compliant with some of the most common security standards. iDeals Virtual Data Room is compliant with the most rigorous industry standards such as ISO 27001:2013, SOC II, Safe Harbor and others.
An archive containing all necessary records, such as uploaded, deleted files with their previous versions and activities logs can be provided on request in the form of Flash or DVD-drive.
iDeals has been a global provider of secure file sharing services since 2008. Since the beginning, our primary goal has always been to provide not only the most secure but simple, user-friendly and smooth due diligence experience. We have been trusted by clients from corporate finance, investment banking, legal, real estate, energy, IT security and other industries.
iDeals has been a global provider of secure file sharing services since 2008. Since the beginning, our primary goal has always been to provide not only the most secure but simple, user-friendly and smooth due diligence experience. We have been trusted by clients from corporate finance, investment banking, legal, real estate, energy and IT security industry.
iDeals' data room platform combines user-friendly interface and comprehensive functions. In addition, their diverse reporting system is extremely helpful when you need some analytic data about your data room. I would hate to switch to another system.
One of the best virtual data room platforms I have come across. Easy to navigate and manage, highly customizable, exceptionally competitive on price. A great option both for sophisticated users as well as novices.
Speaking as an administrator who has used other services, the iDeals' interface is very user friendly and their file management system saved me a lot of time. I also have to give a special mention to their technical support team, they were always readily available to answer my questions. This personalized aspect is very important for business users like myself who are time pressed and in need of timely solutions.
The projects we undertook were really fine, especially considering the virtual data room we have done quite well because the interface of the VDR was pretty easy to use, together with some pretty useful functions.
We continually use virtual data rooms provided by iDeals, the interface is friendly, everything works fine. I am willing to recommend iDeals as a reliable and responsible partner.