A data room is a great tool for streamlining core processes and transactions that depend on secure, effective document sharing. Virtual data rooms are not all created equal. Some offer tools that are specifically designed for specific industries or transaction types. Compare the features and capabilities of providers to ensure you are doing your due diligence. Determine which VDRs are best suited to the specific industry you work.

Some VDR software providers for instance, specialize in assisting M&A due-diligence companies. Others concentrate on the legal, banking and education fields. And some VDRs offer advanced features specifically designed for archiving and collaboration in investment banking as well as structured finance, M&A. SmartRoom, for instance, is a cloud-based VDR that offers speedier upload speeds, SmartLock to revoke access even after data room provider downloading, built-in redaction, and DocuSign integration and other features.

Pay attention to the way the providers manage permissions when comparing the various document-management options available online. Some VDRs permit you to easily assign rights based on each user’s role within the company or contribution to the project. This can improve security and collaboration since everyone will only be able access the documents that are relevant to their.

You can also use audit reports to optimize management and to monitor security. They provide complete details on access to files activities, viewing history, and other activity. Search functions that are enhanced are important, particularly if your team is working with large numbers of files. Make sure your VDR includes optical character recognition (OCR) as well as full text searching with structures and folders, as well as filters to limit results for searches.