If you’re a business who are looking to make major decisions such as M&A transactions, tenders or capital raising, it’s vital that all the relevant information is available. This may mean searching through thousands or tens of thousands highly-confidential documents that could be susceptible to data breaches and other security threats. There’s a solution that combines easy access with secure document storage, and collaboration tools. It’s referred to as the virtual data room (VDR).
A VDR is a business software tool that enables simple, secure and transparent data sharing in due diligence processes. It was specifically designed for the M&A and private equity industry but is also used by anyone looking to conduct the largest deal or project. It’s a secure cloud repository that holds important documents including financial statements as well as legal agreements.
The most effective VDRs are those that have an organized structure for their folders, which makes it easy to navigate. They also have customizable security features which allow you to limit access by establishing timeouts and auto-expiration. You can also limit viewing, printing and downloading of documents, and generate reports about document activity.
VDRs are usually hosted in data centers designed for industry standards that have physical security measures like offsite data backups, fire suppression, and biometric access control. They also have global accessibility making it easier for prospective buyers and investors to look over important documents without needing to travel to your company’s headquarters or other locations.