Virtual data rooms (VDRs) are usually used during M&A processes to facilitate the complicated due-diligence process by giving parties to access important documents for business in a secure and secure environment. All the relevant information is all in one place means participants can focus on the important things, and reduce time spent on compiling and sending information back and forth.
A VDR allows for easy sharing of documents that can be downloaded, printed and even annotated. Annotations can usually only be seen by the person who created them. This is useful when working with highly-confidential documents.
Additionally, a VDR can also help to streamline the lengthy M&A process by allowing potential buyers to access documents online and remotely, instead of having to fly in from abroad and be present for a full due diligence session. This makes the entire process much more efficient.
Virtual data rooms can lower the cost of running a physical space. Paying for the physical space, security and catering can be costly, especially when dealing with large M&A transactions that require high-level buyers as well as experts to attend.
Finally the VDR is a great place to store the files required for an equity or fundraising event, like financial projections or pitch decks. It’s a lot better than free file-sharing software that doesn’t have the same level security as well as auditing capabilities and watermarking features.