A virtual data room, also known as a VDR, is a secure solution for sharing and securing confidential documents. While investment bankers are among the most frequent users of this technology, the benefits are available to businesses of all types. Here are some of VDR’s most popular uses:
M&A due diligence
A merger or purchase of an other company involves sharing a great deal of documents, usually with third-parties such as auditors and regulatory agencies. Having access to a secure, central repository for all of this information assists in making the M&A process much faster and more efficient.
Litigation processes often involve huge volumes of documents that are highly sensitive and confidential. These types of documents can easily be lost or stolen, therefore having a VDR is crucial for legal teams. VDRs make it easy for attorneys and regulators to access the documents remotely, without harming their security.
Signing important documents and sharing them with potential buyers and investors read can be a long process if it is done offline. This process can be accelerated and streamlined with the eSignature feature provided by most VDR providers.