The Role of a Virtual Data Room
A virtual dataroom can be described as a web-based secure storage facility for sharing private information. Typically, VDRs are used during M&A due diligence, however they’re also useful in other collaboration processes, such as auditing, tenders, regulatory reviews and post-M&A integration. A virtual data room is an excellent tool for any business that wants to streamline its process of collaborating with internal and external stakeholders.
With a VDR that is installed, all users can access the documents via an internet browser or secure agent applications. The administrator can limit the access to certain folders or documents. They can also restrict who can print their screen or take photographs. Additionally, the administrator can limit how long the user can connect to the VDR and their IP address. They can also set up the ‘fence mode’ which restricts the amount of information a user can view. This is useful when they are concerned about someone trying to sneak into the VDR.
Large companies with a large amount of sensitive documentation could benefit from the VDR to cut down the time it takes to work on a project. The VDR will also save money on printing and shipping documents. Users can also look over documents without having to travel to an actual location. In the case M&A due-diligence is required, a VDR is a less expensive alternative to paying for airfare and hotel accommodations of bidders or experts who otherwise need to visit the headquarters of the company to look over the materials.
