If you're a business who are looking to make major decisions such as M&A transactions, tenders or capital raising, it's crucial that all pertinent information is available. This may mean searching through thousands or tens of thousands of sensitive documents that could be susceptible to data breaches and other security threats. However, there's a solution that combines access to information with secure document storage and collaboration tools. It's called a virtual room (VDR).
A VDR is a business software tool that enables simple, transparent and secure information sharing in due diligence processes. It's specifically designed for the M&A, private equity and investment advisory industries, but is a tool that can be used by any organization seeking to make an important transaction or project. It's a secure cloud-based repository that can store important documents such as financial statements and legal agreements.
The most efficient VDRs have clear structure of folders that make it easy to navigate and find what you're looking for. They also have customizable security features that permit you to limit user access by establishing timeouts and auto-expiration. They also place restrictions on printing, displaying and downloading documents, as well as generating reports on the activity of documents.
VDRs are usually hosted in industry-grade data centers that include physical security measures such as backups of data offsite, fire suppression, and biometric access control. They also have global accessibility, making it easier for prospective buyers and investors to examine important documents without needing to go to the headquarters of your company or other locations.