Virtual Data Room is a secure cloud storage service that allows companies to share their documents with third party securely. It is used by a variety of industries, including life science, technology, banking, M&A, and more.
Virtual data rooms are most frequently used in M&A transactions, which is the most frequent use of VDRs. They aid in due diligence and close transactions with less risk. This is particularly important because M&A involves a lot of documentation and can be highly sensitive.
To minimize M&A risks to reduce M&A risks, a VDR offers granular user permissions as well as secure spreadsheet viewers, views-only modes, screen-blocking and more. So, only the appropriate individuals can access and view the data. Infrastructure security is also ensured by multiple backups, virus scanning, data center redundancy and many more.
Financial service companies have a large amount of information to manage including business contracts and other legal documents to financial data and accounting reports. This makes them a perfect candidate for VDRs. VDR because they can safely store documents and share them with third-party users quickly.
Investment banks use online document sharing software for M&A transactions as well as capital raising. To make the most efficient use of their resources they require an VDR that has a wide selection of collaboration features and flexible pricing plans. For example an investment bank would require the ability to upload 5MB per second, SmartLock that allows revoking access to documents after they’ve been downloaded, built-in redaction, DocuSign integration, and many more.