A virtual dataroom (VDR) allows you to share sensitive business documents in a secure way with third party. It is often used for due diligence in an M&A transaction, raising funds in a startup, or creating the cure for a disease VDR features include advanced security, project management capabilities, and analytics. Here’s how to evaluate the most effective features to meet your needs.
Legal Firms
VDRs allow law firms to share privileged documents with their clients as well as other attorneys and third parties for litigation, regulatory issues or corporate transactions. VDRs can also be used by biotechnology/pharmaceutical firms to safely share research and clinical trial information with investors.
Investment Bankers
VDR features for investment banks include audit trail and report features that simplify communication with potential buyers or vendors. This helps reduce back-and-forth email messages and helps close deals faster.
Other beneficial VDR features include bulk uploads to accelerate due diligence, image thumbnails in the document overview which reduce the download time and file size as well as integration with Slack to facilitate communication. Advanced analytics and activity tracking give users precise information about who has accessed documents and how. This is especially helpful during sell-side M&A transactions or fundraising as it will help you understand how interested bidders are in a particular company’s documentation.
VDRs are a well-known solution for M&A due diligence because they’re designed to make it easy for buyers to access large volumes of documents to evaluate the value of an acquisition. They can also be used for different purposes like project collaboration or intellectual property management, and even cloud storage.