Virtual data rooms, also known as VDRs, are used to share secure documents with third party parties during M&A deals, IPOs, capital raising and other investment banking processes. VDRs enable these transactions to be more efficient, safer and simpler by offering a convenient, organized platform for collaboration and an audit trail for the entire process.
It is important to choose the right virtual dataroom service in order to protect your documents. Choose a service that offers strong endpoint security definition benefits security measures, including data encryption in transit and at rest, custom watermarking remote shred, two-factor authentication timed access expiration, granular authorizations, and a variety of collaboration tools (Q&A sections as well as document annotation.). These features create an online fortress around your personal information and significantly reduce the risk of unauthorised access, data leakage and other security threats.
Additionally, most modern VDR providers support multi-platforms (Windows, macOS and iOS) and security that is enterprise-grade, even on devices outside of your company’s control. Check the certifications of the provider to ensure that they adhere to industry standards.
While the VDR is used in many different industries, it’s particularly beneficial for property deals that cannot be moved and M&A due diligence. M&A involves the exchange of huge amounts of documentation both on the sell-side and the buy-side. It is therefore important that both parties have access to a platform for collaboration and due diligence. A VDR is the best solution to simplify these processes and improve efficiency as well as safe and simple.