What is a Virtual Data Room De?
A virtual data room (VDR) is an online secure space that acts as an archive of business documents. It permits data to be exchanged between different parties in a controlled setting and helps companies perform due diligence on M&A deals as well as loan syndication, private equity and venture capital deals. VDRs are also an alternative to physical datarooms to store documents in the event of disaster or in situations where resources are scarce.
In the course of mergers and acquisitions, the majority of the information will be shared among the parties. This includes sensitive corporate documents as well as intellectual property. For privacy and compliance reasons it is essential that this information be secured. Using a VDR streamlines communication, protects information and ensures compliance. When choosing a VDR ensure that it integrates seamlessly with your IT systems and business workflows. Choose a solution such as Firmex which has highly flexible interfaces, and can be branded to fit your company’s brand. Select a company that provides 24/7/365 support and has the industry expertise to understand your company’s business processes.
When choosing a VDR be sure that it supports granular permissions settings for users depending on their role and the need to know. It should also allow MFA, and monitoring user logins for monitoring IP, Device and Location for unauthorized access. It should also come with a variety of reporting tools that will help your team gain insights from the data stored in your VDR. The last thing to consider is ensure that the platform is simple to use both for you and the potential buyer or investor.