For companies seeking to make important decisions like M&A transactions, tenders or capital raising, it is essential that all pertinent information is available. This could mean sifting through thousands or tens of thousands confidential documents that are susceptible to data breaches, and other security threats. However, there’s a solution that combines accessibility and security with document storage and collaboration tools. It’s known as the virtual data room (VDR).
A VDR is a business software tool that allows for simple, transparent and secure information sharing in due diligence processes. It is designed specifically for the M&A and private equity sectors but is also used by anyone who wants to carry out a major deal or project. It’s a secure cloud-based repository that holds important documents including financial statements as well as legal agreements.
The most effective VDRs are those with a an organized structure for their folders which makes it simple to navigate. They come with customizable security features which allow you to limit access to files by creating timeouts as well as auto-expiration. You can also restrict printing, viewing, and downloading documents, and create reports on document activity.
VDRs are typically hosted in data centers that have standard security features, like biometric access, fire suppression control, and offsite backups of data. They are also accessible globally to allow buyers and investors to examine important documents without having to visit the company’s headquarters.