A virtual data room for deal-making is a cloud-based, secure repository that permits companies to share and protect crucial business data over the Internet with clients, investors and company leaders in a secure setting. While other document-sharing services are often described as collaboration tools or file sharing services, they are missing several of the crucial features that make virtual data rooms perfect for facilitation of financial transactions and for safeguarding sensitive documents.
While mergers and acquisitions (M&A) procedures are the most frequently used scenario for VDR, it is possible to use VDR however, the software can be used for any type of business transaction that requires the secure exchange of sensitive files. This includes financing activities such as raising capital, IPOs, or strategic partnerships that involve intellectual property or proprietary data between various organizations.
Regardless of the business scenario when it comes to selecting a vdr for deal making, companies should look for transparent pricing structures, easy deployment and ease of use, and a centralized archive that can handle post-closing requirements like regulatory filings or due diligence audits. A reliable provider also provides numerous document and user engagement metrics like activity reports along with file view statistics and more.
A VDR can be customized to meet specific requirements. This can include adding an image to the VDR or constructing custom login screens. It could also involve granular access controls that prevent files from being printed or copied beyond a specified limit. VDRs should also contain various file-level features like watermarking or digital rights management properties. These can safeguard sensitive information from being distributed unintentionally.