For companies looking to make significant decisions such as M&A transactions, tenders or capital raising, it’s crucial that all relevant information is accessible. This may mean searching through thousands or tens of thousands sensitive documents that could be at risk of being hacked, data breaches and other security threats. There’s a solution that offers easy access and secure document storage, and collaboration tools. It’s referred to as the virtual data room (VDR).
A VDR is a software for business tool that facilitates easy and secure, transparent information sharing in due diligence processes. It is specifically designed for the M&A and private equity sectors, but can be used by anyone looking to conduct a index major deal or project. It’s typically a safe cloud-based repository that holds important documents including financial statements, legal agreements and IP protection documents.
The most effective VDRs are those with a an organized folder structure which makes it simple to navigate. They come with customizable security features that let you limit access to documents by setting timeouts and auto-expiration. You can also restrict printing, viewing, and downloading documents, and generate reports on document activity.
VDRs are typically housed in data centers equipped with industry-standard security features, including fire suppression, biometric access control, and offsite backups of data. They also have global access, making it easier for prospective buyers and investors to review vital documentation without needing to go to the headquarters of your company or other locations.