If you’re a business seeking to make important decisions like M&A transactions or capital raising, it’s vital that all relevant information is accessible. This could mean sifting through thousands or tens of thousands of confidential documents that are vulnerable to hackers, data breaches, and other security threats. There is an option that blends ease of access with secure documents and collaboration tools. It’s called the virtual data room (VDR).
A VDR is business software that allows for the simple, secure and transparent sharing of information in due diligence processes. It is specifically designed for the M&A private equity, M&A, and investment advisory sectors, but can be used by any company seeking to complete an important deal or undertake a project. It’s a cloud-based secure repository that stores critical documentation such as financial statements and legal agreements.
The most effective VDRs have clear folder structures that make it easy to navigate and find what you’re looking to. They have customizable security features which allow you to limit access to files by creating timeouts as well as auto-expiration. You can also restrict printing, viewing and downloading documents and generate reports about the activity of your documents.
VDRs are usually hosted in data centers designed for industry standards that have physical security measures like backups of data offsite, fire suppression, and biometric access control. They are also accessible globally to allow buyers and investors to look over important documents without needing to visit the headquarters of your company.
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