Virtual Data Room Solution for Due Diligence

Virtual Data Room Solution for Due Diligence

Virtual Data room Solution for Due Diligence

In business terms, due diligence is the research and analysis of a company or organization done in preparation for a business transaction, for example, one corporate entity can evaluate a company for its assets and decide to acquire accordingly.

This can be between companies or it can be between departments or branches. Folderit’s Virtual Data Room for Solution for Due Diligence is an ideal space for both VDR and Due Diligence integrated onto a single platform. 

Folderit’s Virtual Data Room software fotr Due Diligence solution is ideal for application in the following areas:

Security is essential

Folderit protects content under 256-bit bank-level encryption that enables transfers via secure SSL encryption. Before now, it was unfeasible for companies to transact off-property for obvious risks to data security and integrity. Today, the entire virtual data room for due diligence process has completely shifted to a secure cloud. With Folderit, teams can access content securely without having to physically visit any location. 

Security is more than just prevention from unauthorized access. Companies also need to be sure that anything they are looking at has come through the proper channels. To ensure this, you can set up important documents to go through approvals. This can be in a sequence of hierarchies or all at once. This ensures that files reach other parties only after going through appropriate approvals. You can also enforce a password policy of your choice to add another layer of security.

Streamlining processes

If one company is positioned to acquire another company’s assets, there is more to the process than just carrying it out in a secure environment. You need a VDR Due Diligence solution that lets you prepare in advance how to handle the document sharing.

If you want to ensure that certain documents are no longer visible after a set time has elapsed, you can set an automatic lock timer on said documents. This way, you can set a time to go over certain assets and documents and that content will no longer be accessible afterwards. The window of access can be as little as a few minutes, or hours or as much as days or even months or years. This is especially useful in situations where you would like to redact certain content. 

You can also organize contracts before starting the process. You can configure permissions, visibility and setting up versions with metadata, so you can go back and forth on terms and still keep a trace of the evolution of the document. 

Folderit also lets you configure your documents such that only a single user may work on a document at a time. With this, you can ensure that while one user is working on a file, no other can make changes to that document. If anyone tries to do that, they will see the message that the file is locked along with the username and timestamp of whomever is working on it. 

Confidentiality in Virtual Data Rooms for Due Diligence

In corporate M&A scenarios, it is a fine balance between two parties to offer both transparency and protection. While you want to be completely transparent, you also don’t want to risk exposing any sensitive information before a deal is finalized. You can set it up such that certain users have complete access to some folders, and limit access to other folders. You can also set it up such that users can only preview certain files. Folderit also creates audit trails so you have a complete history of which users accessed which of your files and when. 

Conclusion

As any individual would put in a lot of time and research before buying a car, a new home, or maybe even picking a new roommate. However, if you are on the other end, there might be things you consider off-limits for others to know (e.g. nobody needs to see your private messages before selling you a car). Folderit lets you decide what you do want to share and what you do not. Due diligence is not something you want to take lightly and Folderit ensures that you have all the pre-requisite tools at your disposal. 

All of this means you decide who accesses your documents for how long and under what conditions.

It may be a fine line, but Folderit’s Virtual Data Room for due diligence solution lets you walk it with ease! Start fre trial here!