A virtual data room – or VDR is a safe cloud storage solution that lets companies share sensitive information with third parties. They provide a range of advantages to different industries, including the capability to work effectively, access documents at any moment and securely store multiple versions of the same document.
Virtual data rooms can be useful in any sector where it is required to share confidential documents with third party. Due diligence in M&A fundraising, M&A, and an initial public offering are among the most common use cases. However, the legal industry and healthcare sector profit the most from the use of a virtual data room as they frequently deal with highly confidential data and sensitive business documents.
M&A due diligence involves a thorough documentation review for potential buyers, and a VDR can simplify this process by offering features like automatic indexing, full-text search and role-based access control. The VDR also assists M&A professionals remain in compliance with the law, by using protocols reporting tools and strong security measures, including watermarking, encryption of information and virus scanning.
Fundraising and IPOs require the highest levels of collaboration between shareholders, and the use of a VDR can assist in this process with effective communication tools like comment sections and Q&A. Furthermore the top-rated VDRs permit you to monitor all user activity through comprehensive logging and reporting functionalities. Pricing is similar to that of cell phone plans and internet and internet plans, with a starting price and optional add-ons dependent on the features or the duration.
