Virtual Data Room Usage

Virtual data rooms can be used in a variety of ways to facilitate secure document sharing without the need for a costly physical facility. VDRs are usually utilized during due diligence for mergers and acquisitions. However, they can be used to share documents with business partners, clients and other stakeholders.

A virtual data room is ideal for M&A transactions because it allows both the sell-side and prospective buyers to look over documents in one place, without exposing sensitive information. Investment bankers also use VDRs to share confidential documents with clients as well as other stakeholders involved in M&A and capital raising processes. Technology companies utilize VDRs to communicate manufacturing and design information across teams around the world. Consultants use them to identify trends in big data that can inform corporate strategy.

A VDR can reduce M&A expenses by decreasing printing and travel costs, and by making documents more accessible than physically stored. It is also easy to modify the storage system to meet the needs of every project, and to provide restricted access on a document-by-document basis.

Users can access VDRs with their web browsers, so they can read documents from anywhere with internet access. Administrators can access detailed reports of user activity including who viewed which documents when, and from where. This can provide information that may not be available through physical storage, where access logs can only provide information on what is being read and who is accessing it.