While VDRs are typically associated with M&A due diligence, they can also be used for almost any other data sharing process that requires a business to share confidential information outside its firewall. VDRs can be used to facilitate sharing documents for a IPO or to raise funds from limited partners. They accomplish this by automating tasks and improving communication.
Contrary to their predecessors which required companies to mail physical documents to reviewers Virtual data rooms allow users to view and access documents on demand. This will not only speed up the review process, but also ensures that confidential business documents can only be viewed by authorized parties. It also eliminates the risk of a security breach and compliance violations.
For example, A VDR can provide granular user activity tracking for each of the documents in the room. This includes who accessed which document and at what time. This feature is useful when conducting security audits, because it will show only a particular group of people viewed sensitive documents for business. It can be helpful in M&A due-diligence as it gives more information about the level of interest, and helps companies identify which documents are most appealing to investors or bidders.
When selecting when choosing a VDR, choose one that offers customizable reports and real-time analysis to give administrators the intelligence they need. It should be easy to use on any device, and provide seamless user experience for many users.