Due diligence is a crucial procedure for companies seeking to raise capital or sign an M&A deal. It involves the exchange of sensitive and private information between parties.
File sharing can be a great way to streamline due diligence and ensure that all stakeholders have access to the information they require. However, it is crucial to consider the security of these files and the ability of those involved to access them. Secure file sharing solutions such as Virtual Data Rooms offer bulletproof security that protects the documents from hackers and unauthorized access. To safeguard sensitive data, parties should also use encryption, strong passwords, and two-factor authentication, and a VDR that has features such audit trails, watermarks, and more.
Document management tools allow users to upload documents, rearrange and navigate. These include drag-n’drop and bulk file uploads, automatic folder structure, automatic index numbering, and much more. This will allow everyone to find the right documents and start due diligence sooner.
Reporting functions, such as user activity tracking and color coded help keep track of what is being evaluated and when. This will give you an important insight into the progress of the due diligence process and will highlight areas that require improvement.
A lot of the top services for file sharing have due diligence that’s convenient for all. This is particularly the case for virtual data rooms which are compatible with Android and iOS devices. They also have an automatic logout option that doesn’t send the user due diligence file sharing back to the login page following an undetermined amount of time without activity, and will automatically re-open the session after the user reconnects.