A virtual dataroom (VDR) provides a secure platform where companies can exchange confidential documents during M&A deals. This confidential documentation could include financial records, legal documents, and information about employees. VDRs simplify due diligence processes by providing a convenient place to share and examine these files without the risk of leaks. Screenshot and watermark protections prevent sharing that is not authorized. Configurable settings allow administrators to assign specific permissions to each user.
In an M&A transaction there are multiple stakeholders who require simultaneous access to the same information. This includes limited partners and investors and financial and legal specialists. A good VDR provider allows these people to view and access the documents from a computer or mobile device, regardless of location. This can save time and money as it does away with the need to print physical copies of documents, printing, and travel costs.
VDRs can also be a useful method of sharing information in a collaborative environment. Many companies offer collaboration software that let users browse and edit documents in real time. This allows for more productive meetings, and speeds up the decision-making process.
While there are many advantages to using the VDR security is the main consideration. Find a VDR service that has industry-standard security certifications and that has a strong encryption of data during transit and at rest. Also, make sure that the platform has granular permissions for users and two-factor authentication to increase security. DFIN’s Venue VDR is a great example of a platform that meets these requirements.