It’s important that businesses have all the data they require to make critical decisions, including M&A deals, tenders or capital raising. This may mean searching through thousands or index tens of thousands of confidential documents that are susceptible to hacker attacks, data breaches, and other security threats. There’s a solution that combines easy access with secure document storage and collaboration tools. It’s referred to as the virtual data room (VDR).
A VDR is a business software that enables the easy, safe and transparent sharing of data in due diligence procedures. It was specifically designed for the M&A and private equity sectors however, it can be utilized by anyone who is planning to execute the largest deal or project. It’s typically a secure cloud repository that contains important documentation including financial statements, legal agreements and IP protection documentation.
The best VDRs are those with a an organized structure for their folders that makes it easy to navigate. They also have adjustable security features that allow users to restrict access by setting timeouts or auto-expiration. They also place restrictions on printing, viewing, and downloading files, and creating reports about the activities of documents.
VDRs are typically hosted in data centers that are equipped with industry-standard security features, such as biometric access, fire suppression control, and offsite backups of data. They also have global accessibility making it easier for investors and potential acquirers to examine important documents without needing to travel to your company’s headquarters or other locations.