Due diligence has been around since the mid-teenth century. It originally meant «requisite effort.» It is now used to describe the amount of research one must conduct prior to negotiating an agreement with a business. In business, the due diligence process involves evaluating a potential acquisition or business opportunity and requires access to a vast volume of documents.

Due diligence was typically completed by face-to-face meetings or by mailing or faxing large paper documents. Technology has changed how we conduct business, and how we conduct due diligence. Nowadays, you can conduct a full due diligence process on a company or an asset without ever leaving your office. A Virtual Data Room online is the most secure method to store and share confidential documents.

A VDR is an online platform that lets users to share confidential data securely to investors, customers, or business leaders. It is an excellent tool to use during M&A transactions, capital raising tenders, legal proceedings or any other type of business activity where sensitive information needs to be shared.

There are a myriad of data room software providers, ranging from the more mainstream options like Dropbox and Google Drive, to more specialized ones such as Firmex. It’s important to take into account security features, reviews and price when choosing a provider. It is also essential to determine what type of data will be stored and how it can be used. Label your files and documents according to their logic, upload them into the virtual data room and set permissions for each group.

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