There are a myriad of virtual data rooms (VDRs) on the market. They can be used to collaborate, due diligence, or storage projects. It is crucial to choose the right option according to your requirements. You want your data to be accessible and easily accessible, be downloaded and shared safely and that your personal information remains private.
Due Diligence
One of the most commonly used use cases for virtual data rooms is due diligence in M&A deals. This involves sharing confidential information between two or more parties such as financial documents, legal documents and even employee details. A VDR allows the seller and buyer conduct due diligence in a systematic, secure and controlled manner. It is important to monitor who has accessed the information and when in order to avoid security breaches or sensitive leaks of information. Features such as watermarking and screen-save prevention can stop this from occurring during the due diligence process.
Preparation
A preparation VDR is a great way to get your team organised prior to when a full due diligence exercise begins. It allows you to upload information and documents early so that everything is ready to go when third parties are invited to join. This can help create efficient processes. The best virtual data storage spaces for preparation allow you to customize document permissions based upon roles, folders, and even documents and files. This ensures that only the information you require can be viewed.
