The Role of a Virtual Data Room

A virtual dataroom is a Web-based secure repository that allows sharing of confidential information. Often, VDRs are used during M&A due diligence, but they are also useful for other processes of collaboration, like auditing and regulatory reviews, tenders and integration after M&A. Virtual data rooms are a beneficial tool that can be utilized by any business to speed up the process of collaboration with both internal and external stakeholders.

With a VDR the entire user can access the documents through a web browser or secure agent applications. The administrator can control who has access to certain folders or documents. They can also decide who is able to print their screen or take screenshots. Administrators can also limit how long users can login to the VDR and their IP address. They can also enable a ‘fence mode’ which restricts the amount of information that a user can see. This is a good option in the event of people trying to sneak an unintentional peek.

A VDR can be used by businesses with large volumes of sensitive documents to cut down on the amount of time required to complete a project. The VDR will also save them money on shipping and printing documents. Users can also access documents without having to physically visit a physical location. In the case of M&A due diligence, the VDR can be a more affordable alternative to paying for hotels and flights of bidders or experts who might otherwise have to visit the virtual data rooms headquarters of the company to look over the materials.

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