For businesses who are looking to make major decisions such as M&A transactions, tenders or capital raising, it’s crucial that all relevant information is accessible. This could mean sifting through many thousands of highly confidential documents that could be susceptible to hacker attacks, data breaches, and other security threats. There’s a solution that combines easy access with secure document storage and collaboration tools. It’s called the virtual information room (VDR).
A VDR is a business software that facilitates the easy, secure and transparent sharing of information in due diligence procedures. It’s specifically designed to serve the M&A private equity, M&A, and investment advisory sectors, but can be used by any company seeking to execute an important transaction or project. It’s typically a secure cloud repository that contains important documentation including financial statements, legal agreements and IP protection documents.
The most effective VDRs have identity management software clear structure of folders that allow users to easily navigate and find what you’re looking for. They have customizable security features that allow you to restrict access by creating timeouts and auto-expiration. You can also limit viewing, printing and downloading of documents and create reports on document activity.
VDRs are usually hosted in data centers designed for industry standards that include physical security measures such as offsite data backups, fire suppression, and biometric access control. They also have global access which makes it easier for potential buyers and investors to access important documents without having to travel to your company’s headquarters or other locations.
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