Virtual data rooms can be utilized in a variety scenarios to facilitate secure document sharing without the requirement for a costly physical facility. The most typical VDR use is in due diligence in mergers and acquisitions. However, they can also be used to share documents with business partners, and other stakeholders.
For M&A deals using a virtual data space is a great option because it allows both sellers and potential buyers to view the documents in one location without exposing sensitive information or risking a breach. Investment bankers also utilize VDRs to share confidential information with clients and other stakeholders during M&A or capital raising processes. Technology firms use VDRs to communicate manufacturing and design information across teams throughout the globe. Consultancy firms also employ them to detect trends in big data that could be used to inform corporate strategies.
A VDR can also help reduce M&A costs by reducing the need for printing and travel costs, and by giving access to documents quicker than is possible using a physical repository. In addition, it is easy to customize the storage structure to suit every project and to provide restricted access on a document-by-document basis.
VDRs are generally accessed via an internet browser, which means users can review documents wherever they have internet access. Administrators can obtain comprehensive reports of the activities of users, including who viewed which documents, when, and where. This provides insight that may not be available with physical storage, where access logs can only reveal what’s being used and by whom.