A virtual data room enables businesses to safely share documents with a restricted set of external parties. This is usually done using an encrypted link that comes with multiple layers of permissions. This reduces the risk of data leaks and security breaches while allowing for quick sharing. When you’re sharing financial documents for an M&A transaction or loan syndication your company is sharing sensitive intellectual property to facilitate an agreement with a pharmaceutical company or a company that needs to quickly collaborate with lawyers from outside and other third parties, VDRs are the solution.

Mergers and Acquisitions

Due diligence is an essential undertaking for companies involved with mergers and acquisitions. A purpose-built VDR enables read more teams to quickly and safely share confidential documents with a variety of third parties including board members who are located elsewhere. The top VDR providers offer upload speeds of 5MB per second, SmartLock that revokes access to documents after downloading with redaction built-in DocuSign integration as well as dedicated project managers to help you complete deals more quickly.

VDRs also provide extensive activity tracking, reporting and transparency to guarantee due diligence. This includes granular information about the files that are viewed, and by whom, and what action they take on each file. This information assists in making business decisions during the deal process and ensures compliance with regulatory requirements. Users can quickly and easily get answers to their questions from experts within their team or external advisors using VDRs with an integrated Q&A functionality.