Virtual deal rooms are a great tool for streamlined business transactions, whether you’re selling your business or simply want to share documents more easily with clients, investors, and executives of your company. Also referred to as VDR (virtual dataroom) or online file storage or private virtual room, it’s an online platform that allows users to access files on the internet from any device and at any location which makes it simple for all parties involved in a transaction to access and review confidential documents from any location anytime.
The most popular use-case for the virtual data room is during the due diligence process in M&A transactions. The sell-side organizes all relevant documentation into a safe cloud-based environment that can only be accessed at a specified date by the prospective buyer. This will ensure that the information is secure and buyers are able to make an informed decision.
Other major uses include making preparations for an IPO, collaborating with board members, and sharing files for fundraising rounds. A VDR can accelerate your vetting, closing and decision-making processes. You’ll also save money on printing, shipping and keeping documents. A VDR’s advanced security features will help you avoid costly errors by making sure that no one else has access to your sensitive information.