virtual data room

The most popular use of virtual datarooms is to complete market transactions such as Mergers and Acquisitions. In this case, buyers need access to a large amount of confidential documents stored in various locations. This means that a company must lease the space for the files and also hire security companies to provide 24-hour surveillance. This is not necessary and costs can be cut by implementing a data room.

A VDR can also assist businesses in keeping an eye on who has accessed documents and when. The administrator can define which documents an individual may download, view and print. It is also possible to add dynamic watersmarks to documents, which identify who viewed them at the time of. This ensures that confidential information isn’t compromised.

The platform also allows for the sharing of sensitive data with outside entities, like accountants and lawyers. This is particularly crucial when a business needs to share sensitive information as part of an audit or other type of regulatory process. A virtual dataroom permits outsiders to easily review the company’s data without risking leakage and compliancy violation.

If you’re planning an M&A deal, going public or collaborating on contracts with clients, the right VDR will help you get the job done while remaining legally compliant. Find a VDR that has a range of flexible functions and features, such as AI functions that make it easier to speed up the review of contracts. DFIN’s Venue for example uses AI to provide significant efficiency and data during due-diligence by reducing repetitive tasks, automating them and allowing full text searches as well as auto-redaction.