Jan 15, 2019 3 Reasons to Choose a Customizable Virtual Data Room
When you’re looking for a virtual data room, there are many vendors that offer an out-of-the-box solution. The “box” may have many features, some of which may be important for your particular needs and some not.
Years ago, I was convinced by a washing machine salesperson to buy the top of the line washer that included 15 or so buttons versus the simpler machine with about 3 wash cycle options. After 5 years, and many sock and towel washings, I realized I never used more than three of the 15 buttons.
I learned that the value of an appliance or a service is not about the number of features offered, but rather which features I really needed.
Why customization of a virtual data room is important
Most virtual data room vendors don’t allow much customization of their data room. Their template is set, which allows them to volume-sell their product solution. That’s a great feature for the vendor – but for the user, not so much.
One question a prospective user often fails to ask is:
“How much customization am I allowed with your site?”
Why is customization important? For the same reason, you have a unique company name, logo and branding. A virtual data room is a tool that should be branded as your company and not the vendor’s company.
The point of a virtual data room is that it’s a secure place to share data. You’ll be inviting clients or partners to use the site. They should feel they are in your secure hands, not relying on a third-party vendor.
Customized URL or Website Address
The URL of your virtual data room is often your first opportunity to brand the secure room.
When managing projects like the sale of a company, or the sale of assets like oil and gas, the URL or website link, is typically sent to invited bidders via email. If the URL address is that of a vendor, e.g. http://2794.Intralinks.com the selling company or M&A advisor has lost that vital first opportunity to brand the virtual data room.
A URL named https:://MYCOMPANYNAME.com communicates immediately that this data room is not the vendor’s site but rather the online data room owner’s site.
Company Banner, Logo, and Graphics
Another way to customize the site is to add the owner’s logo or banner across the top of each page in the virtual data room. When you see United Airlines written across the side of an airplane, along with the United Airlines logo, it’s pretty obvious that this is United’s airplane (whereas it may actually belong to a third-party company that is leasing the aircraft to United).
Branding an online data room is just as important. Many vendors allow you to add a small logo somewhere on a page, but their name is more prominent on the site.
See below an example of a truly branded data room site for this securities brokerage firm.
Customizing Your Virtual Data Room with Custom Added Text
Once you have your branded virtual data room URL web address and web pages with your banner and logo prominently displayed, it’s time to see if your data room vendor allows some custom text.
After a visiting user logs into a company data room, they are directed to a first page, or “home page”. It’s here that the company managing the site can add a text description of the project, or online data room instructions, or special bidding instructions, and even a list of contacts for help related to the online data room.
This strong customization opportunity to add custom text about your company or the project showcased in the online data room, may or may not be offered as an option depending on the vendor.
See sample below. This customized text assists the virtual data room visitor to understand the data room contents and the next steps.
When you are dealing with M&A and other sensitive transactions, a virtual data room is an important part of the process. Make sure it tells your story exactly the way you want it to.
Below is a sample of customized text for a securities offering.
About the Author
Mickey Henry is the owner of idrShare, LLC and supports investment banks, advisory firms and corporations by building and hosting customer designed virtual data rooms. Mr. Henry has over 20 years’ experience in providing data rooms and provides passionate support to his clients.