A virtual data room or VDR is a secure cloud storage system that lets companies share sensitive data with third party. They offer a range advantages for various industries. They include the ability to collaborate efficiently, access documents at anytime and store securely multiple copies of the same document.
Virtual data rooms are useful in nearly every sector where it is required to share confidential information with third party. Due diligence in M&A fundraising, M&A and the first public offerings are among the most frequent use cases. Virtual data rooms are most useful to the healthcare and legal industries which handle sensitive documents and highly confidential information.
M&A due diligence involves a thorough documentation review for potential buyers and a VDR can help streamline this process by offering features like automatic indexing, full-text search and role-based access control. The VDR helps M&A professionals adhere to the law by utilizing strong security measures like data encryption as well as virus scanning and protocol reporting tools.
Fundraising and IPOs require the highest levels of virtual data room collaboration between shareholders, and the use of a VDR can assist in this process with efficient communication tools like comment sections and Q&A. Top-rated VDRs also let you track user activity with extensive log-in and reporting features. Pricing is similar to cell phone plans and internet with a basic price and optional add-ons dependent on the features or duration.
