A virtual data room is a software application that provides an online repository for sharing and hosting confidential files. These services are utilized for various transactions and business processes, including litigation, M&As and fundraising. They allow business teams to share securely and efficiently documents, facilitate collaboration, protect sensitive information and automate processes.
VDRs can be accessed via any device, whether it’s a laptop computer, desktop computer, or mobile phone. Many modern providers also offer in-app support that is available 24/7. Typically, the support team is multilingual and offers a help center with videos of the product. VDRs are less expensive than physical data rooms and their customer support generally offers more personal attention than regular cloud storage services.
Most VDRs offer a free trial to let users try the software and find out whether it is suitable for their needs. This is a good way to learn more about the software, and see how it works in practice and if it can be easily adapted to your IT workflows of your company.
M&A due diligence is the most frequent scenario for VDR. M&A deals require a great deal of documentation. It is essential to share the relevant information with prospective buyers without exposing themselves to breach of compliance or violation. To ensure that the documents are properly prepared and reviewed, the companies involved typically rely on specially-designed virtual data rooms for M&A due diligence. This lets companies save the cost of sending and receiving large amounts of documents.
