The most common use case of a virtual data room is to complete market transactions like Mergers and Acquisitions. In this instance, buyers require access to large quantities of confidential documents which are stored in various locations. A company has to rent a room to store files and employ security guards to monitor the space 24 hours a day. The implementation of data rooms will eliminate the need and helps reduce operating expenses.
A VDR can also assist businesses in keeping an eye on who has accessed documents and how. Administrators can set specific permissions for documents a user is able to view, print and download. It can also create dynamic watermarks for documents, which indicate who viewed them at the time of. This ensures that confidential information is not compromised.
The platform also supports the sharing of sensitive files with third parties, such as accountants and lawyers. This is especially important when a company has to divulge sensitive information as part an audit or another type of regulatory process. A virtual data room makes it simple for those outsiders to scrutinize the company’s files without putting at risk leaks or compliancy violations.
Whether you’re preparing for an M&A deal, going public or collaborating on contracts with clients, the right VDR will aid you in getting the job done and remain compliant. Find a VDR which has a variety of functions and features, including AI functions to simplify and speed up contract reviews. DFIN’s Venue, for example, uses AI to offer significant efficiencies and insights in due diligence by decreasing repetitive requests, automating tasks and enabling full-text searches and auto-redaction.