A virtual data room is a digital repository for storing and sharing documents that can be shared, organized and tracked all within the administrator’s control and discretion. This is a great way to support complicated business processes and projects that require disclosure of confidential documentation to third parties outside the firewall.
Online data rooms are commonly used in M&A transactions, helping buyers to complete their due diligence. having all relevant documentation in one place enables faster and more efficient review and ensures confidentiality is preserved.
Investment banks are the most common users of VDRs, helping on both sides of the buy-side as well as the sell-side in financial transactions such as mergers and acquisitions. They are required to review and access a large number of sensitive documents, which require reliable storage and collaboration between several stakeholders across various locations and time zones.
Life science companies operate in highly controlled environments, and have multiple partners and shareholders. They also need to share sensitive documents every day. They are often required to raise money or prepare for an IPO. VDRs provide a secure platform to share and collaborate, with a detailed activity tracker that allows you to determine who has accessed what documents.
The top data room providers offer numerous features that make document management easier and facilitate collaboration. These include a simple user interface, easy multi-project management with the capability to set permissions that are specific to each user, and a 24/7 support team. Many data room providers have flexible pricing, such as an annual subscription that gives an affordable price per project and the flexibility to begin or stop projects at any time.