A virtual data room is a software that lets you securely share and host confidential data online. These services are used to facilitate various business processes and transactions, including M&As, litigation and fundraising. They enable business teams to securely and efficiently share documents to facilitate collaboration, secure sensitive information and automate processes.
VDRs can be accessed via any device, whether it’s a desktop computer, laptop, or mobile phone. A lot of modern providers offer in-app support that is available 24/7. Typically, the support team is multilingual, and comes with a an online help center with videos of the product. VDRs are more affordable than physical data rooms and their support for customers typically provides more individual attention than regular cloud storage products.
Most VDRs offer a free trial to allow users to test out the software and determine whether it meets their requirements. It is a great way to gain knowledge about the software, to see how it functions in real-time and if it can be easily adapted to the workflows of the company and IT systems.
Due diligence in M&A deals is the most frequent use of VDR. M&A deals require a lot documentation. It is crucial to share relevant information with potential buyers without putting themselves at risk of compliance violations or breaches. To ensure that the documents are properly prepared and reviewed, the businesses involved often rely on purpose-built virtual data rooms for M&A due diligence. This allows the companies to save the cost of sending and receiving large volumes of documents.
