In the past, many companies took extreme measures to keep their most sensitive data hidden. A misplaced document could lead to lost opportunities or costly lawsuits. In today’s digital age companies can secure sensitive files by placing them in storage and sharing them in an encrypted virtual data room.
Virtual data rooms are software-based platforms that facilitate document sharing during critical business transactions, such as M&A fundraising, IPOs and due diligence. They’re a more efficient and efficient way to share and exchange documents than email or traditional cloud storage solutions.
Security is the primary benefit of VDRs against other cloud storage alternatives. The best virtual datarooms come with multiple layers and advanced encryption technologies, as well as access control methods. This makes them a robust digital fortress to safeguard your private data. They also offer granular access rights for view-only mode, view-only mode and screenshot blocking in order to stop unauthorized downloads and access. In addition, many VDRs provide compliance reporting tools that strengthen your position during negotiations and closing deals, while demonstrating compliance with regulatory requirements.
A life sciences company is an example. It may require sharing confidential records of research findings or patients with multiple parties. A VDR will facilitate collaboration and protect all parties involved while keeping documents organized in an easily navigable folder structure with standardized file names.
In the same way, oil and gas companies have to collaborate with their external partners in a project, but they need to ensure strict data security in order to comply with. A VDR that comes with built-in document reader and multiple layers of data encryption, 24 hour backup and virus scanning, as well as redundancy in the data center can help reduce M&A risk, accelerate deals and boost productivity.