Virtual Data Rooms
Virtual data rooms (VDRs) allow you to make it easier and more secure to share important documents with other parties. Businesses in many industries including life sciences and tech are using them for due diligence as well as for other business-related events like M&A capital raisings audits and strategic reviews.
A VDR offers a number of advantages over physical storage. The files can be accessed from any location with an internet connection. They are also not subject to physical causes of damage like fire or floods and can be kept securely for as long as the company wishes to keep them.
A VDR is most commonly used to aid in M&A processes, when many sensitive documents need to be reviewed by prospective buyers. During M&A due diligence it is the VDR allows companies to share confidential financial documents, business plans and more without having to worry about their security. Permissions are able to be changed in a dynamic manner, and the detailed user activity logs provide valuable insights into the interests of each buyer.
A virtual data room should have multiple layers of protection including physical security as well as cloud security, to ensure the safety of data stored online. A reliable VDR will regularly backup its servers to prevent data loss in the event of technical problems. It should also implement encryption methods, digital watersmarking and other features to deter hackers from gaining access to files. It should be simple for teams and compliance departments to move data from other platforms into the VDR.