A virtual data room, or VDR is a secure solution for sharing and protecting confidential information. Investment bankers are the most frequent users of this technology but it can be used by businesses of all kinds. Here are some of VDR’s most frequently used applications:
M&A due diligence
Merging with or purchasing another company requires a huge amount of documentation to be shared, usually with third parties such as auditors and regulatory bodies. The M&A process is made much more efficient and speedier when you have access to a centralized, secure repository of this information.
Litigation processes involve large volumes that are highly sensitive or confidential. These types of documents can be easily lost or stolen, which is why having a VDR is vital for legal teams. VDRs offer lawyers and regulators the ability to access documents remotely without the risk of compromising security.
Offline sharing and signing important documents can be a lengthy process. With the e-signature feature that most VDR providers offer this procedure can be streamlined and speeded.