For businesses who are looking to make major decisions such as M&A transactions or capital raising, it’s vital that all relevant information is readily available. That can mean combing through tens of thousands of highly confidential documents that are potentially susceptible to hacker attacks, data breaches, and other security threats. There is an answer that combines the access to information with secure document storage and collaboration tools. It’s called a virtual data room (VDR).
A VDR is a software for business tool that enables simple, secure and transparent data sharing in due diligence processes. It is specifically designed for the M&A as well as private equity and investment advisory industries, but can be used by any company looking to make an important transaction or project. It’s typically a secure cloud repository that houses critical documentation including financial statements, legal agreements, and IP protection documents.
The most efficient VDRs have clear structure of folders that make it easy to navigate and find what you’re searching for. They come with customizable security features that allow you to restrict access by establishing 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 housed in industry-grade data centers that contain physical security measures, such as backups of data offsite, fire suppression, and biometric access control. They are also accessible worldwide, allowing investors and potential buyers to access important documents without having to visit the headquarters of your company.
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