A virtual dataroom (or virtual room) is a service that’s cloud-based and allows the safe uploading of several files, archiving them and sharing the files. These platforms are accessible via a variety of devices such as laptops and tablets, unlike physical data rooms. This allows users to work from anywhere and at any time, making them ideal for many different types of projects. They are a great choice for M&A processes, and for collaboration between business partners.
M&A transactions typically contain large volumes of private documents that have to be viewed by bidders. Traditionally, buyers would need to travel to the seller’s office to look over the documents, which can be both expensive and time-consuming. VDR lets bidders look at the same documents simultaneously and speeds up the due diligence process, leading to more attractive bid prices.
VDRs can protect intellectual property as well as offering a simple viewing experience. They accomplish this by restricting access to specific documents. This can be accomplished by various features like requiring two-factor authentication, watermarking or the ability to present the terms of use agreement that users must agree to before they can view documents. These advanced security measures to ensure that confidential data remains safe throughout the due diligence and M&A process. VDRs are a vital tool for global M&As and business partnerships in the 21st century. Therefore, it is essential to select a service that has strong security protocols as well as granular access controls.
