5 Use Cases For Virtual Data Rooms

Virtual data rooms offer a cost-effective and secure alternative to traditional document sharing. They can be utilized to facilitate a broad variety of business transactions, including mergers and acquisitions as well as strategic partnerships, fundraising intellectual and property management audits, board communications and corporate development.

Mergers and Acquisitions

Virtual data rooms are most frequently used in mergers and acquisitions where companies might need to review or provide large volumes of documents as part of due diligence. this VDRs allow buyers to easily access the information they require, without the need to travel to the seller.

IPOs

Companies that choose to go public must maintain a high level of transparency with both the public and shareholders, therefore they require an efficient and secure method of document sharing. They can make use of virtual data rooms to store and share data with shareholders, investors and lenders, among others while ensuring that their private information stays out of the hands of rivals.

Litigation

Lawyers and their clients also rely on secure virtual data rooms to safeguard confidential data from competition or legal action. They can set the files to view-only and limit access to specific users, thus preventing the sharing of information that could be detrimental to the case.

Exit and Estate Planning

Often, lawyers must share sensitive information with other parties in the course of estate planning and real estate transactions. They can use a secure virtual data room to manage the process and keep all documents in one location. This makes it easier for attorneys to share information with their colleagues.