The Role of a Virtual Data Room

A virtual dataroom is a software which facilitates the sharing of documents in any scenario requiring secure and professional file management and distribution. Most commonly, VDRs are used in mergers and acquisitions however they can also be useful for strategic partnerships, raising funds and IPOs as well as legal instances.

In the past it was normal for people involved in legal or due diligence procedures to travel to an actual location and spend hours scouring piles of paperwork. A virtual data room eliminates this hassle and offers an easier user experience for all parties. With the help of an advanced search engines, you can locate a document in just a few clicks.

Another key role of a virtual data room is its capacity to support complex collaboration and communication in negotiations. A leading pharmaceutical firm, for instance, made use of a virtual dataroom to complete a complex merger between an industry giant and an established pharmaceutical company. With the help of streamlined communications and enhanced data security provided by the platform both companies were able to close the deal with minimal rework.

Furthermore, a digital data room can offer more thorough and transaction-focused analytics than cloud storage. For instance although cloud storage apps provide basic access statistics, such as usage statistics and current access, VDRs allow admins to grant more granular permissions to specific documents or folders and to monitor the activity of users at a granular level including who is viewing which document and the length of time. Additionally, VDRs can be set up to restrict the frequency at which users log on to the system, the duration that they are able to access the platform and even limit access by IP address.

Data Room