It’s crucial that businesses have all the information they require to make critical decisions, including M&A deals, tenders or capital raising. This can involve scouring through tens of thousands of highly confidential documents that are potentially susceptible to hacker attacks, data breaches, and other security threats. However, there’s an option that combines ease of access with secure documents and collaboration tools. It’s called the virtual information room (VDR).
A VDR is a piece of software used in business that allows for the simple, transparent and safe sharing of information in due diligence processes. It’s specifically designed for the M&A as well as private equity and investment advisory fields, but can be used by any company looking to execute an important project or deal. It’s a secure cloud-based repository that stores critical documentation including financial statements as well as legal agreements.
The most effective VDRs have clear folder structures that allow you to easily navigate and find what you’re searching for. They have customizable security features that allow you to restrict access to documents by setting timeouts and auto-expiration. You can also limit viewing, printing, and downloading documents, and generate reports about document activity.
VDRs are typically located in data centers that are equipped with standard security features, like fire suppression, biometric access control and offsite data backups. They also are accessible worldwide which allows investors and potential buyers to examine important documents without having to visit the company’s headquarters.
