A virtual data room is a secure, web-based repository for sharing confidential documents. Often, VDRs are used during M&A due diligence, however they’re also useful in other collaboration processes like auditing, tenders, regulatory reviews and integration after the merger. Virtual data rooms are a valuable tool that can be utilized by any business to streamline the process of collaboration with external and internal stakeholders.

With a VDR that is installed, all users can access the documents on a web browser or secure agent applications. The administrator can restrict users’ access to specific folders or documents. They can also restrict who is able to print their screen or take screenshots. In addition, the admin can limit the length of time a user can log on to the VDR and their IP address. They can also establish the mode of ‘fence view which restricts the size of the document a user can view if they’re concerned that someone might try to look into sensitive information.

Companies that have large volumes of sensitive documentation can benefit from VDRs to help with sensitive documentation. VDR to reduce the amount of time needed to complete a project. The VDR could also enable them to save on costs of printing and shipping documents and make it more convenient for users to examine the documents without having to move to a physical place. In the instance of M&A due diligence, VDRs can be a great option. VDR could be a cost-effective alternative to the airfare and hotel stays of bidders or experts who may otherwise have to visit the headquarters of the company to inspect the materials.

https://dataroomdc.com/role-of-a-virtual-data-room-in-managing-mas/