Virtual Data Room Benefits

Virtual Data Room Benefits

A virtual data room (VDR) is an online secure digital repository for sharing and storing sensitive company documentation. VDRs are usually used for due diligence and M&A but they are also valuable in investment banking processes such as IPOs and capital raising.

Many top-quality VDR providers offer a range of benefits for all stakeholders. They include document permissions that are granular, robust security measures including encryption during transit and at rest, custom watermarks remote shred, advanced management of files. This makes it difficult for hackers to view private data – and hinders them from doing it to do so.

VDRs facilitate collaboration to ensure due diligence by centralizing documents to be reviewed and discussed, instead of distributing them over multiple email threads. They also facilitate access to documents on demand for those not located in the same space. This saves a significant amount of time when negotiating a deal.

During M&A, the use of a virtual data room allows investors and acquirers quickly evaluate the potential deal with a clear overview of all the relevant documents. This helps reduce the number of questions posed and allows parties to move on to discussions about other aspects. This can significantly speed up M&A deals. Additionally a virtual data space can allow life science companies to communicate their R&D information with investors or potential partners. This includes details of clinical trials and HIPAA compliance, as well as medical records, patents and IP licensing. This information can help a person determine if a venture is worth pursuing and make an informed choice.

Due Diligence