The deal management solution for large companies and holdings based on the virtual data room platform supports all stages of work from creation and discussion to approval and execution of contracts. In his article, we will analyze the top VDR providers.
The purpose of implementing the data room
Contracts are the backbone of your business. They define relationships with partners, suppliers, customers, and employees. These critical documents protect the business from operational and regulatory risks, define pricing, payment terms, and service levels. Contracts contain terms, conditions, and milestones that need to be tracked throughout the life of the contract. Other types of documents that are closely related to contracts and that also need to be managed are powers of attorney, attachments, supplemental agreements, and court cases.
The problem is that confidential data are often stored throughout the organization in different departments, in different formats, and in different systems. Deal automation is often performed at the departmental level using legacy solutions with limited functionality. Many contracts continue to live in isolation and are disconnected from the main business systems in which purchases and sales take place.
This situation leads to long approval times, manual processing, and hence inefficiencies and errors, which in turn increase contract management costs and the risk of non-compliance with internal procedures or regulatory requirements.
To overcome this situation, the organization needs to adopt a comprehensive, strategic and flexible approach to supporting deal management processes. An integrated virtual data room (VDR) solution helps you manage risk and liability, empower your teams, and maximize the value of your business contacts.
The data room is a system of structured storage, tracking the history of the use of electronic documents, their quick and easy search. The creation of an electronic archive is designed to ensure the reliability of storage, confidentiality, and differentiation of access rights to documents.
What about data rooms rating?
Nowadays there are dozens of data room providers in the IT market. The list of the 7 top-rated software vendors includes:
- iDeals
- Ansarada
- Fitmex
- Digify
- Fordata
- Caplinked
- Sharefile
These data room solutions are fully integrated and designed for all types of contracts, including purchase, sale, and other agreements. It implements contract management best practices and supports all aspects of work, from initiation and creation to editing, negotiation, approval, execution, and renewal. These data room vendors are widely used during M&As, IPOs, venture capital, real estate, and other transactions.
VDR advantages
VDR software solution ensures the following benefits:
- Information is conveniently systematized – each contract has its card with all the basic data;
- Terms of approvals are controlled, and you will be reminded of the deadline by an e-mail notification;
- The movement of the document is fixed – the responsible person is always aware of who has the contract;
- It is possible to set up approval routes, along which the contract must pass;
- You will be able to generate analytical reports on the approvals;
- You can sign contracts with an electronic signature.
- Enhance collaboration and deal transparency;
- Creation of contracts based on templates;
- Increased productivity through controlled access, better search and reuse of texts, and workflow automation.
It also should be mentioned, that the VDR solution provides a dashboard that allows managers to track key metrics such as current contracts, completed contracts, approval dates, and many other parameters that affect process efficiency. It also provides ample opportunity to create custom reports with views on certain indicators.