Virtual Data Room Usage
Virtual data rooms can be used in a variety of scenarios to facilitate secure document sharing without the need for a costly physical facility. VDRs are typically used during due diligence for mergers and acquisitions. However they can also be utilized to share documents between business partners, customers and other stakeholders.
For M&A deals, a virtual data room is a great option because it allows both the sell-side as well as prospective buyers to view the documents in one place without exposing sensitive information or committing a breach. Similarly, investment bankers often utilize VDRs to share confidential documents with clients and other stakeholders in M&A and capital raising processes. Technology firms use VDRs to communicate manufacturing and design information across teams around the world. And consultancy businesses use them to identify patterns in large data that could help inform the corporate strategy.
A VDR can cut down on M&A costs by reducing printing and travel costs, and also by making documents more accessible than the physical repository. It is also possible to customize the storage system to suit each project, and give restricted access on a document by document basis.
Users can access VDRs with their web browsers, meaning they can read documents from any location with internet access. Administrators can also obtain detailed reports of user activity and who has was watching what, when and where. This gives you insight that isn’t available through physical storage. Access logs only reveal who used what, and when.