It’s essential that businesses have all the data they need to make key choices, such as M&A deals, tenders or capital raising. That can mean combing through tens of thousands of highly sensitive documents that are susceptible to data breaches and other security threats. However, there’s a solution that combines access to documents with security documents and collaboration tools. It’s known as a virtual information room (VDR).
A VDR is a business software tool that facilitates easy and secure, transparent information sharing in due diligence processes. It’s designed specifically for the M&A, private equity and investment advisory industries, but can be used by any organization seeking to conduct an important transaction or project. It’s typically a secure cloud repository that contains important documentation including financial statements, legal agreements, and IP protection documents.
The most effective VDRs have clear structure of folders that allow users to easily navigate and find what you’re searching for. They also have customizable security features that allow you to limit access by creating timeouts and auto-expiration. You can also restrict printing, viewing and downloading documents and generate reports about the activity of your documents.
VDRs are typically housed in data centers that are of a high-quality and contain physical security measures, such as offsite data backups, fire suppression, and biometric access control. They are also accessible worldwide to allow investors and potential buyers to review important documentation without having to visit the headquarters of your company.