A virtual data room (VDR) is a safe digital storage space for sharing sensitive data. It allows individuals and businesses to work together in a secure environment, while protecting sensitive information from any unauthorized access. It allows for quicker and more efficient sharing of documents, due diligence and strategic reviews. VDRs are at the heart of a myriad of outcomes, including M&A, capital raises and audits, tenders, and more.
Investment bankers need access to important documents such as operational, legal and financial documents during the due diligence process. To ensure a successful deal it is crucial that the buy-side has access to these documents. A virtual data room makes it easy to upload and share these documents. Administrators can modify the permission settings to limit which documents users can view, print or download. Administrators can also set expiration dates and deprive access remotely for document disclosure.
The collaborative features of a VDR can help streamline the asset purchases process and create an effective working relationship between team members. These features include real-time commenting annotation, ad hoc commenting, and control of versions. Many VDR providers also provide an integrated repository for all files. This removes the need for large attachments in emails, and allows you to locate specific versions of files.
VDRs can be hosted online, which means they are accessible worldwide. This allows investors from all around the world to be a part in a deal, and also increases competition for the company being sold. A VDR can also be used to store contracts and other documents required to maintain business relations.