For businesses planning to make big decisions like M&A transactions, tenders or capital raising, it’s vital that all the pertinent information is available. This can involve sifting through thousands or tens of thousands of sensitive documents that could be susceptible to data breaches and other security threats. There’s a solution that allows easy access, secure document storage, and collaboration tools. It’s referred to as the virtual data room (VDR).
A VDR is a business software tool that facilitates simple, transparent and secure information sharing in due diligence processes. It was specifically designed for the M&A and private equity markets, but can be used by anyone who is planning to execute the largest deal or project. It’s a cloud-based secure repository that is able to store critical documents, including financial statements and legal agreements.
The most effective VDRs are those that have clear folder structures that makes it easy to navigate. They also have security options that can be customized to allow users to restrict access by setting timeouts or auto-expiration. They also place restrictions on printing, viewing, and downloading files, and creating reports on the activity of documents.
VDRs are typically hosted in industry-grade data centers that include physical security measures such as offsite data backups, fire suppression, and biometric access control. They also have global accessibility which allows investors and potential buyers to access important documents without having to go to the headquarters of your company or other locations.
