Virtual data rooms permit better collaboration and secure sharing of documents in a controlled environment. They are used in many industries to organize a variety of documents that include financial records, business plans and customer information, among other sensitive information. They provide advanced document management with enhanced security, as well as compliance with business partners and other stakeholders. Cloud storage platforms like Dropbox and Google Drive may offer file-sharing, collaboration and other features but they don’t have the specific functionality required to share business data.
M&A due diligence
M&A due diligence is a common scenario for a VDR because it often involves the disclosure and review of massive volumes of documents that may contain confidential or proprietary information. A VDR can help reduce the stress and time needed to complete M&A due diligence, and allow parties to access the information from any place with an Internet connection. In addition, access to documents is able to be revoked in the event that the deal does not close.
Law firms
A secure virtual data room is a beneficial tool for attorneys to share documents with clients, partners and regulatory bodies. Virtual data rooms allow attorneys to collaborate and work on legal cases from anywhere with an Internet connection which streamlines workflows and increases productivity.
Real estate industry
If a company is planning to purchase or sell property, it may need to share documents with multiple interested parties including potential buyers as well as investors and regulators. A VDR can be utilized to organize and share documents and speed the process. It also helps to prevent sensitive information from being lost.
Fundraising
Enterprises and startups might need to raise funds for new investments or expand into other markets. A VDR is the ideal solution, since it is transparent and provides a good organization of documentation. A VDR can also reduce the risk of fraud by providing thorough audits.
You should choose a VDR with customizable branding. This will allow you to modify your login page and email templates. You are likely to be able choose your preferred integrations. Think about the ways the VDR can be secured by features like two-factor authentication and password protection. Additionally the granular permissions settings remote app wiping and the ability to grant granular permissions are essential. Make sure the VDR is certified to be compliant, such as SOC 1 and SOC 2, ISO 27001, HIPAA. Lastly, make sure your preferred VDR supports redaction, which allows you to black out areas of the document to ensure personally-identifiable information remains private. This is a must-have feature for M&A deals and similar transactions.
