It’s important that businesses have all the data they require to make critical decisions, like M&A deals, tenders, or capital raising. This could involve searching through thousands or tens of thousands confidential documents that could be susceptible to data breaches and other security threats. Fortunately, there is an answer that combines the access to information with secure document storage and collaboration tools. It’s called a virtual data room (VDR).
A VDR is a software for business that allows for the simple, secure and transparent sharing of information during due diligence procedures. It is designed specifically for the M&A and private equity sectors, but can be used by anyone looking to conduct an important deal or project. It’s a secure cloud repository that is able to store critical documents that includes financial statements as well as legal agreements.
The most effective VDRs are those with a an organized structure for their folders which makes it simple to navigate. They also have customizable security features which allow you to limit access to documents by setting timeouts and auto-expiration. You can also limit viewing, printing and downloading of documents, and create reports on the activity of your documents.
VDRs are often hosted in data centers designed for industry standards that are protected by physical security measures such as offsite data backups, fire suppression and biometric access control. They are also accessible globally to allow investors and potential buyers to look over important documents without having to visit the company’s headquarters.