A virtual data room, also known as a VDR is a safe solution for sharing and protecting confidential documentation. Investment bankers are the most frequent users of this technology, however it is a viable option for enterprises from all sectors. Here are some of the VDR’s most commonly used uses:
M&A due diligence
Merging with or purchasing another company requires a huge amount of documentation to be shared, typically with third parties like auditors and regulatory bodies. The M&A process is made much quicker and easier when you have access to a centralized, secure repository of all the relevant information.
Legal cases
Litigation processes involve large volumes which are extremely sensitive or confidential. These kinds of documents are susceptible to being lost or stolen, which is why having a VDR is very important for legal teams. VDRs allow lawyers and regulators to look over the documents remotely, without compromising their security.
Real estate
Signing important documents and sharing them with potential investors and buyers is often a lengthy process if it is done offline. With the e-signature feature most VDR providers offer the procedure can be streamlined and speeded.