After a string of notable data breaches, companies are now worried about sharing private information securely with third party. A virtual information room (VDR) can allow users to access documents from any device that connects to the internet, facilitates many types documents sharing and due-diligence procedures. These rooms are used for a variety of reasons, such as M&A transactions and venture capital financing, as well as other transactions requiring extensive documentation sharing and analyses.
To create a VDR you should first find an accredited service provider who offers a transparent pricing model and customer service. Then, migrate the existing data to the platform. Ensure that the documents are organized and indexed in a way that makes it easy to search. Also, make sure that permissions for users are set based on roles. Also, train your staff on how to make use of the VDR. This includes ensuring they are aware of security protocols and best practices for managing documents within the platform.
VDRs are particularly useful to manage intellectual property including trademarks, patents, and research data. They are designed to safeguard this data from unauthorized use and to prevent IP theft throughout different business transactions by implementing features like watermarking and selective distribution, document expiry and downloading restrictions.
During an M&A process, it is common for a significant configurable computing resources amount of confidential information to be exchanged between the selling and buying company. This includes financial records, legal documents and employee information. A VDR organizes the data so that both parties can conduct due diligence in a short time.