Features and Functions of Virtual Data Room

While VDRs are typically associated with M&A due diligence, they can be used for virtually any other data sharing process that requires a business to share privileged information beyond its firewall. VDRs can be used to facilitate document sharing, whether it’s for an IPO or to raise funds from limited partners. They accomplish this by automating tasks and improving communication.

In contrast to their recommended you read: a detailed comparison of data room versus dataroom predecessors, which required companies to send physical documents to reviewers virtual data rooms allow users to access and review documentation on-demand. While reviewing process is much quicker and easier, it also ensures only authorized people can view confidential documents, and eliminates the possibility of a security breach or compliancy violation.

A VDR for instance, can monitor user activity in full detail on every document in the room. This includes who accessed the document and when. This feature is useful in conducting security audits because it is able to prove that only a particular group of people have viewed sensitive business documentation. It is useful for M&A due-diligence as it gives an accurate picture of interest levels, and helps companies identify what documents are most appealing to investors or bidders.

When selecting when choosing a VDR make sure you choose one that can be customized for reporting and real-time analytics to provide administrators with the behind-the information they require behind the scenes. It should be simple to use on any device, and provide seamless experiences for multiple users.