What Is a Virtual Data Room?

A virtual dataroom (VDR) can be a cloud-based repository for documents and other files. It is used to securely share sensitive business data, for instance, during mergers and acquisitions. Due diligence processes, fundraising rounds and financial audits are common. When compared to traditional physical storage, VDRs provide greater control on access and security while cutting down on management costs.

When choosing a VDR pick one with a comprehensive and extensive set of features. This will support your company’s needs. For instance, you may be interested in determining if the platform complies with ISO 27081 standards for data security or is equipped with an effective virus and malware scanner, uptime that exceeds 99.9% and multifactor authentication to this post ensure that your uploaded data is safe. Look for features that can be customized, such as color-coding to help identify documents during internal meetings, as well as at-a glance reporting that provides C-suite executives with the high-level overview they require.

The most popular use for the VDR is during M&A deals that allow potential buyers to look over extensive documents for the companies being sold. M&A virtual data rooms enable an efficient due diligence process and reduce risk by limiting access to private information to only the people who need to access it. When negotiating an M&A deal users can also benefit from the VDR’s Q&A section and comments. This boosts productivity and speeds decision-making. M&A VDRs also offer complete audit trails that are essential for M&A diligence.