VDR secure data exchange is an essential technology tool for companies involved in M&A transactions as well as fundraising deals, real estate asset management, and many other situations in which sensitive documents need to be shared instantly with other parties. This can include service provider and prospective investors or internal employees. In most instances, using a VDR is significantly faster and more efficient than sending files via email or other similar tools.
Some VDRs have advanced features that decrease the risk of human error in sharing sensitive documents. These may include user impersonation, as well as a “View As” feature to verify the permissions of any collaborator before inviting them to view confidential documents. Some VDRs also employ dynamic watermarking techniques that overlay confidential documents with labels that are invisible or visible. This makes it easier to trace leaks of documents if they happen.
Finally, some VDRs employ encryption for data at rest to ensure the integrity of data stored on their servers. This helps companies meet the strict requirements of the GDPR regarding safeguarding personal data transferred across border. Some VDRs also help companies comply by regulating their relationships with third-party vendors by ensuring that the vendors follow the company’s policies and procedures for data protection.
In addition, certain VDRs integrate with popular collaboration tools such as Slack and Microsoft Teams to enable why mergers and acquisitions fail remote work and collaborative projects within a secure environment. This streamlines communication and eliminates physical document exchanges, saving both time and money.