A virtual data room, also known as a VDR, is a secure solution for sharing and securing confidential documents. Investment bankers are the most frequent users of this technology, however it can be used by businesses from all industries. Here are a few of the most commonly used uses for a VDR:
M&A due diligence
A merger or acquisition of another company requires a large amount of documentation that must be shared, usually with third parties such as auditors and regulatory bodies. The ability to access an organized, secure repository of all this information helps make the M&A process significantly quicker and more efficient.
The litigation process often involves massive volumes of documents that are sensitive and confidential. These types of documents are easily lost or stolen, which is why having a VDR is essential for legal teams. VDRs give lawyers and regulators the ability to access documents remotely without any compromise to security.
Signing important documents and sharing them with potential investors and buyers can be a lengthy process when performed offline. This process is able to be speeded and simplified by using the eSignature service offered by the majority of VDR providers.