For businesses seeking to make important decisions like M&A transactions or capital raising, it is essential that all the relevant information is readily available. This can involve scouring through tens of thousands of highly sensitive documents that are susceptible to hacker attacks, data breaches, and other security threats. However, there’s an option that combines ease of access with secure document storage and collaboration tools. It’s referred to as the virtual data room (VDR).
A VDR is a software for business that enables the easy, safe and transparent sharing of information in due diligence processes. It is specifically designed for the M&A and private equity sectors but is also used by anyone who is planning to execute the largest deal or project. It’s typically a safe cloud-based repository that holds important documents including financial statements, legal agreements, and IP protection documentation.
The most effective VDRs have clear folder structures that allow you to easily navigate and locate what you’re looking for. They also have customizable security features that allow you to limit access by creating timeouts and auto-expiration. You can also limit viewing, printing and downloading documents and generate reports about the activity of your documents.
VDRs are usually hosted in data centers designed for industry standards that contain physical security measures, such as offsite data backups, fire suppression and biometric access control. They also have global access making it easier for prospective buyers and investors to look over important documents without needing to travel to your company’s headquarters or other locations.
