A virtual data room is an instrument that facilitates sharing documents in any scenario that requires professional and secure file distribution and management. VDRs are mostly used for mergers and acquisitions, but they can also prove useful in strategic partnerships, fundraising, IPOs, and legal processes.
In the past, it was common for people involved in due diligence or legal procedures to travel to an actual location and then spend hours scouring stacks of paperwork. A virtual data room removes the hassle and provides an easy-to-use experience for all parties. With the help of a sophisticated search engine, you can find a file in just a few clicks.
A virtual data room can also play a crucial role in supporting complex collaboration and communication within negotiation. A major pharmaceutical company, for example, used a virtual dataroom in the course of the complex merger of an industry giant and a renowned pharmaceutical firm. Because of the streamlined process for communication and enhanced security of data provided by the platform, both companies were able conclude their merger with minimal changes.
A virtual data room may also provide more detailed analytics, that are focused on transactions and more comprehensive than cloud storage applications. VDRs can, for instance let administrators assign granular permissions and monitor user activity on a fine level, including who saw which document and for how long. Cloud storage applications only provide basic information, such as usage statistics and current access. VDRs also allow administrators to limit the number of times that a user can access the platform, as well as the time during which the user is able to use the platform, and even restrict access based on IP address.
