A virtual data room (VDR) is a secure digital place for storing and sharing sensitive files. It allows individuals and businesses to work in a secure environment while protecting sensitive data from an unauthorized access. It also allows for faster and more efficient document exchanges as well as due diligence and strategic reviews. VDRs are at the heart of a myriad of tangible outcomes, from M&A to tenders, capital raises and audits.
During the due diligence process investment bankers require access to vital financial, legal, and operational documents. It is also essential for the buyer of the transaction to have access to these materials to ensure a successful transaction. A virtual data room makes it easy to upload and share these documents. Its flexible permission settings allow the administrator to restrict what documents users are able to see and print or download. Administrators can also set expiration dates and deprive access remotely for document disclosure.
The collaboration tools available in the VDR can aid in streamlining the process, and also foster an efficient collaboration between team members. These features include real time commenting, annotations and the ability to control version. Many VDR providers also offer an all-in-one repository for all files. This makes it unnecessary to send large attachments, and makes it easier to find specific versions of files.
VDRs are hosted on the Internet which makes them available worldwide. This permits investors to participate from around the world in a transaction, which increases the competition for a business being sold. Additionally a VDR can be used to store contracts and other documents required to maintain business relationships.