A virtual dataroom is a secure online repository that allows the secure storage and sharing of sensitive data between multiple parties. Its main purpose is to streamline tasks, protect confidential information, enhance communication, automate processes and increase efficiency when conducting business transactions that are crucial to the company. It is often used during M&As, but it also facilitates many document sharing scenarios for external partners.
M&As require a significant amount of documentation to be reviewed by both the buy-side and sell-side companies. Investment bankers are essential to the process, since they assist both sides with due-diligence and other transactional activities. They require reliable storage for their work, which is why they depend on VDRs.
A reliable VDR provider lets administrators know how long every document was viewed by whom and at what time and when, so that they can respond quickly if needed. This is an advantage of VDRs over physical ones, which don’t usually provide this level information.
VDRs can also be used by administrators to add projects, specify labels for documents, schedule reports, and apply branding features. This makes the platform more recognizable and helps facilitate collaboration and communication among various participants in M&As or other strategic business initiatives.
The best online VDRs have a simple interface and a clear layout which makes it easy for users to navigate between tabs. They provide a powerful search function and can support a variety of file formats. This makes it easy to upload and download documents. Modern VDRs provide a variety of additional features that enhance the overall platform experience. For instance, some VDR providers offer mobile apps that allow users to have easy access to documents while on the go.