It’s crucial that businesses have all the information they require to make crucial decisions, such as M&A deals, tenders or capital raising. This may mean searching through tens or thousands confidential documents that could be at risk of being hacked, data breaches, and other security threats. There is an option that blends access to information with secure document storage and collaboration tools. It’s referred to as a virtual data room (VDR).
A VDR is a business software that enables the easy, secure and transparent sharing of information in due diligence procedures. It is specifically designed for the M&A, private equity and investment advisory fields, but is a tool that can be used by any organization seeking to make an important deal or undertake a project. It’s a cloud-based, secure repository that is able to store critical documents including financial statements as well as legal agreements.
The best VDRs are those with a clear folder structures which makes it simple to navigate. They also come with customizable security features that allow you to limit user access by setting timeouts or auto-expiration. This can be done by putting limitations on printing, displaying and downloading documents, as well as generating reports on the activity of documents.
VDRs are typically housed in data centers designed for industry standards that contain physical security measures, such as offsite data backups, fire suppression and biometric access control. They also have global access which makes it easier for investors and potential acquirers to review vital documentation without needing to travel to your company’s headquarters or other locations.