A virtual data room (VDR) is a safe digital storage space for sharing sensitive files. It provides companies and individuals with a secure data room index environment for collaboration while protecting sensitive information from access by unauthorized persons. It also facilitates faster and more efficient exchange of documents and due diligence as well as strategic reviews. VDRs form the basis of a myriad of tangible outcomes, from M&A to tenders, capital raises and audits.
During the due diligence process bankers in the investment industry require access to vital financial, legal and operational documents. It is also essential for the buyer of the transaction to have access to these documents to ensure a successful transaction. A virtual data room makes it easy to upload and share these documents. Its permission settings can be customized to allow the administrator to restrict the types of documents that users can view and download or print. Administrators can also set document expiration dates, and revoke remote access to documents.
The collaboration features available with a VDR can help streamline the process and help create an effective working relationship between team members. These features include real-time annotations, comments, and version control. In addition, a lot of VDR providers offer a central repository for all files. This reduces the need to use large attachments in emails, and makes it easier to locate specific versions of files.
VDRs are hosted on the Internet and are therefore accessible worldwide. This allows investors from all over the world to join in a deal, and also increases the competition for the business that is being sold. Furthermore a VDR can be used to keep contracts and other documentation that is necessary for maintaining business relationships.