While VDRs are often associated with M&A due diligence, they can be used in any data sharing process that requires companies to share sensitive information that is not within its firewall. Whether it is sharing intellectual property for an IPO or soliciting funds from limited partners, VDRs can help make any document sharing process more efficient by enhancing communication and automating tasks.
In contrast to their predecessors, which required companies to mail physical documents to reviewers virtual data rooms allow users to access and browse documents on demand. While reviewing process is much faster and more efficient, it also ensures that only authorized persons can access confidential business documents and eliminates the possibility of an incident of security or compliancy violation.
For example for instance, the VDR can provide granular user activity tracking for each of the documents in the room. This includes who accessed what document and at what time. This feature is helpful when conducting security audits as it can prove that only a particular group of people has viewed sensitive business documentation. It can also be helpful in M&A due diligence because it provides a clearer picture of the level of interest features and functions of virtual data room and helps companies understand which documents are most enticing to bidders and investors.
When selecting the right VDR make sure you choose one that allows for custom reporting and real-time analytics that provide administrators with the behind-the data they require. It should be simple to use on any device and provide seamless user experience for many users.