The Role of a Virtual Data Room

A virtual data room is a safe web-based repository that allows sharing of confidential documents. In most cases, VDRs are used during M&A due diligence, however they’re also useful for other processes of collaboration, like auditing and tenders, regulatory reviews, and post-M&A integration. Virtual data rooms are an excellent tool that can be utilized by any business to improve the process of collaboration with external and internal stakeholders.

With a VDR the entire user can access the documents using a web browser or secure agent applications. Administrators can place limits on who is able to access specific folders or documents. They can also control who can print their screen or take screen shots. In addition, the admin can limit the time users can connect to the VDR and their IP address. They can also activate the ‘fence mode’ which restricts the amount of information a user can access. This is helpful for those who are worried about someone trying to steal in.

A VDR can be utilized by businesses with large volumes of sensitive documentation to reduce the amount of time needed to complete a project. The VDR can also save money on printing and shipping documents. Users can also review documents without having to travel to a physical location. In the event of M&A due-diligence is required, a VDR is a more affordable option than paying for flights and hotel accommodations of bidders or experts who otherwise need to visit the company headquarters to inspect the materials.

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