It’s important that companies have all the data they need to make key decisions, like M&A deals, tenders, or capital raising. This may mean searching through tens or thousands confidential documents that are susceptible to hacker attacks, data breaches, and other security threats. There is a solution which combines easy access with secure document storage and collaboration tools. It’s called the virtual data room (VDR).
A VDR is a software for business tool that enables simple and secure, transparent information sharing in due diligence processes. It is designed specifically for the M&A and private equity sectors, but can be used by anyone planning to conduct the largest deal or project. It’s typically a safe cloud-based repository that contains important documentation including financial statements, legal agreements, and IP protection documentation.
The best VDRs are those with a an organized folder structure that makes it easy to navigate. They have customizable security features that allow you to restrict access by creating timeouts and auto-expiration. You can also limit viewing, printing, and downloading documents, and generate reports on the activity of your documents.
VDRs are typically hosted in data centers that are of a high-quality and are protected by physical security measures such as backups of data offsite as well as fire suppression and biometric access control. They also are accessible worldwide to allow buyers and investors to access important documents without needing to visit the company’s headquarters.