Virtual Data Room allows businesses to securely share documents with other parties. It’s used by a variety of industries such as life science, technology, banking, M&A, and more.
Virtual data rooms are commonly used for M&A transactions which is the most common application of VDRs. They aid in due diligence, and closing deals with less risk. This is important, since M&A can require large volumes of documents, and be extremely sensitive.
To lessen M&A risks, a VDR gives users granular permissions, secure spreadsheet viewers, views-only modes, screen-blocking, and more. So, only the appropriate individuals can access and view the data. Security for the infrastructure is also ensured with multiple backups as well as virus scanning.
Financial services companies have a lot of data to manage from business contracts to other legal documents to financial data and accounting reports. This makes them an ideal candidate for the use of a VDR because they can secure documents and share them with other parties quickly.
Investment banks utilize online document sharing software for M&A transactions and capital raising. To make the most efficient use of their resources the firms require a VDR that comes with a broad variety of collaboration options and flexible pricing plans. For example an investment bank may need a solution with speeds of uploading 5MB per second, SmartLock that allows revoking access to documents after downloading, built-in redaction features, DocuSign integration, and more.