A Virtual Data Room (VDR) is a secured online location that gives multiple parties simultaneous access to the same documents. They are extremely beneficial in due diligence, M&A and other projects that require secure, swift and easy access to documents.
VDRs are commonly used to share and collaborate on contracts with clients and partners and for storing and making readily accessible documents that are crucial to maintain the running of business partnerships. Engineering firms, for instance frequently collaborate to build and construct buildings, or to provide services. They will often exchange documents within a Virtual Data Room. These documents will be easily accessible to all contractors and clients who are part of the partnership.
The most common use of a virtual data room is to aid to the due diligence process, but they can be utilized to aid the entire life cycle of a deal, restructuring, or fundraising and also for sharing and storing corporate documents. They are more reliable and efficient method of managing documents in comparison to other methods like email or even physical filing cabinets.
The key features of a great VDR include an encrypted messaging tool for internal team collaboration, the ability to see who has viewed and downloaded files, as well as the ability to auto-expire or delete files when they have been accessed so that sensitive data is kept safe. It is also worthwhile looking for a provider that offers flexibility in their subscription packages to ensure that when needs change they can be easily modified to meet the needs.