The virtual dataroom (VDR) provides a secure platform for sharing documents in a variety of business scenarios. The VDR is a powerful tool for sharing documents in virtually any situation regardless of whether it’s during due diligence, an IPO or reorganization. The top VDR providers provide professional customer support via a variety of options, including live chat in the app and phone. A lot of these solutions offer multiple languages as well as training videos.
The most common use case for the use of a digital data room is in due diligence M&A transactions. In this stage, the sell-side needs to communicate all relevant documents to potential investors, but ensure that sensitive information remains confidential. The VDR ensures all documents are only accessible by people who need the documents to carry out their job. This is accomplished by granting access rights in granular fashion to specific folders and files.
The logical file structure and easy navigation makes it easy to find the information you need. To further enhance the users’ experience, some VDRs allow users to build a custom data room theme and add company logos to their dashboards.
Another advantage of digital data rooms is that they are accessible on any device, as long as it has internet connectivity and an up-to date web browser. This makes communication easier between boards of directors, resulting in quicker decision-making and an efficient workflow. Digital data rooms also provide an audit trail of every activities. This includes everything from the moment that a file was first viewed to the IP address from where it was visited.