A virtual data room allows companies to share documents with a restricted set of external parties. This is usually done via a secure link with multi-layered permissions. This allows for instant sharing and also prevents leaks of data. VDRs can be used to share confidential financial documents in M&A transactions or loan syndication. Additionally, you may want to share sensitive intellectual property in an agreement with pharmaceutical companies.
Mergers & Acquisitions
For companies involved in mergers or acquisitions, a thorough due diligence requires a huge amount of document review. A specially-designed VDR allows teams to swiftly and securely share confidential data with a variety of third parties including board members who are located elsewhere. The best VDR providers can offer upload speeds of 5MB per second, SmartLock that revokes access to documents after downloading, built-in redaction DocuSign integration read review as well as dedicated project managers to help complete deals faster.
VDRs are also able to provide detailed activity tracking and reports for transparency and accountability in due diligence. This includes information that is precise about the files that are viewed, and by whom, as well as the actions they take with each file. This information is used to make informed decisions about the deal and to ensure compliance with the regulatory requirements. VDRs with an integrated Q&A feature are able to assist users quickly and efficiently locate the answers they need from experts within their teams, or from advisors outside of the team.