If a company requires external parties to review its data, whether for due diligence or collaboration it can be a challenge to share sensitive information without risking breach or violating compliance. Virtual data rooms facilitate the sharing of documents and automate processes so companies can successfully complete a variety of business-related events.
VDRs are most commonly utilized for mergers and acquisitions, but any business can benefit from a user-friendly platform that centralizes files instead of sending them back and forth via email. If you’re trying to raise money from investors or prepare for an IPO using a virtual information room can help streamline the process and assist stakeholders in finding the information they require in a way which reduces confusion in communication.
A good VDR should also allow the ability to restrict document permissions in a granular manner, allowing access to specific documents or folders. Many providers provide comprehensive log and reporting features which track user activity, including who viewed what documents and when. A robust search feature as well as a logical file folder structure makes it easy for users to navigate through the documents and find the information they’re looking for quickly.
One of the most important features is the ability to create customized document views based on their job or the responsibilities they have. By giving specific viewing permissions you can ensure that only relevant documents are seen and avoid miscommunications and loss of productivity. Many providers also offer a drag and drop interface that makes it easy to upload data.