If you’re a business who are looking to make major decisions like M&A transactions or capital raising, it’s vital that all the relevant information is accessible. This can involve scouring through the tens of thousands of private documents that could be susceptible to data breaches and other security threats. However, there’s an answer that combines the ease of access with secure documents and collaboration tools. It’s known as the virtual data room (VDR).
A VDR is a business software tool that facilitates simple, secure and transparent data sharing in due diligence processes. It’s designed specifically for the M&A private equity, M&A, and investment advisory industries but is a tool that can be used by any company seeking to make an important deal or project. It’s a cloud-based secure repository that stores critical documentation, including financial statements and legal agreements.
The best VDRs are those with a an organized structure for their folders, which makes it easy to navigate. They also have security options that can be customized to allow you to limit user access by establishing timeouts and auto-expiration. This can be done by putting limitations on printing, viewing and downloading documents, as well as generating reports on document activity.
VDRs are often hosted in data centers that are of a high-quality and have physical security measures like offsite data backups, fire suppression, and biometric access control. They also have global access making it easier for potential buyers and investors to access important documents without needing to go to the headquarters of your company or other locations.
