Features and Functions of Virtual Data Room
While VDRs are often associated with M&A due diligence, they can also be used for virtually every data sharing procedure that requires a company to share sensitive information beyond its firewall. VDRs are a great tool to simplify sharing documents for a IPO or to raise funds from limited partners. They do this by automating tasks and improving communication.
Virtual data rooms allow users to access and view documents on demand, unlike their predecessors that required companies to send physical copies to reviewers. While this makes the review process quicker and easier, it also ensures only authorized persons can access confidential business documents and eliminates the possibility of a security breach or compliancy violation.
For instance for instance, a VDR can provide detailed user activity tracking for each of the documents in the room. This includes who accessed which document and when. This feature is helpful when conducting security audits as it can demonstrate that only a certain group of users viewed the sensitive documents for business. It can be beneficial in M&A due-diligence because it provides a clearer view of interest levels, and helps companies identify which documents are the most attractive to bidders or investors.
When selecting the best VDR make sure you choose one that provides customizable reports and real-time analysis to provide the administrators with the data they need. It should also provide seamless uploading of documents for multiple users, and be simple to navigate on any device, especially mobile devices.