The term due diligence has been around since the mid-teenth century. It was originally used to mean “requisite effort.” It is now used to describe the amount of research one must conduct prior to making an investment decision. Due diligence is a method which involves evaluating an acquisition or business opportunity.

Traditionally due diligence was performed through face-toface meetings in person and mailing or virtual data rooms in ma transactions faxing large documents. Technology has changed the way we conduct business and due diligence. Nowadays, it is possible to conduct a complete due diligence process on a company or asset without leaving your office. A Virtual Data Room online is the most secure way to keep and exchange confidential documents.

A VDR is cloud-based system that allows users to securely share confidential information with clients, investors or business leadership. It’s a great tool for M&A and capital raising, tenders, or legal proceedings.

There are numerous options for data room software which range from popular platforms like Dropbox and Google Drive to more specialized providers like Firmex. When selecting a provider, it’s important to consider security features, prices and reviews. It is also crucial to know what kind of data you will be storing and how it will be accessible. Sort your files and documents logically. Upload them to the virtual dataroom and set permissions for each group.