A virtual dataroom is a Web-based secure repository that allows sharing of confidential information. Often, VDRs are used during M&A due diligence, however they’re also useful for other collaboration processes like auditing and tenders, regulatory reviews and post-M&A integration. Virtual data rooms are a beneficial tool that can be utilized by any business to improve the process of collaboration with internal and external stakeholders.
With a VDR all users are able to access documents using a web browser, or secure agent software. Administrators can limit the access to certain folders or documents. They can also control who is able to print or take screenshots of their screens. Additionally, the administrator can limit how long a user can log on to the VDR and their IP address. They can also create a ‘fence view’ mode which restricts the size of the document a user can view if they’re concerned that someone could try to get a glimpse of sensitive information.
A VDR can be used by companies with large volumes sensitive documentation to reduce the time required to complete a project. The VDR can also enable them to save money on printing and shipping documents, and make it more convenient for users to examine the information without having to travel to a physical location. In the instance of M&A due diligence, VDRs can be a great option. VDR could be a cost-effective alternative to the hotels and flights of bidders or experts who might otherwise have to visit the company’s headquarters to inspect the materials.