When a company needs outside third parties to look over its information, whether for due diligence or collaboration it can be a challenge to share sensitive information without risking a breach or in violation of compliance. Virtual data rooms streamline the sharing of documents and automate processes to allow companies to effectively complete a variety of business events.
VDRs are most commonly utilized for mergers and acquisitions. However, any business can benefit from an easy-to-use platform that centralizedizes files instead of sending them back and forth via email. If you’re trying to raise funds from investors or prepare for an IPO or IPO, a virtual data room can streamline the process and assist stakeholders in finding the information they need in a systematic manner which reduces communication chaos.
A good VDR should also provide the ability to restrict document permissions in a granular manner, allowing access to specific documents or folders. Many providers provide comprehensive reports and logging features that monitor user activity, including who viewed which documents and when. A robust search feature and logical folder structure makes it easy for users to navigate through the information.
Another key characteristic is the ability to create customized document views for users according to their roles and the responsibilities they have. By granting specific viewing privileges it is possible to ensure that only the relevant documents are viewed to avoid miscommunications and lose productivity. Many providers also offer an interface for drag-and-drop that makes it simple to upload and organize data.
