A virtual dataroom, or VDR is a secure way to share and secure confidential documents. Investment bankers are the most frequent users of this technology however it is a viable option for businesses of all kinds. Here are a few of VDR’s most popular uses:
M&A due diligence
Merging with or buying another business requires a huge amount of documentation that must be shared, most often with third parties like auditors and regulatory bodies. The ability to access an organized, secure repository for all this information helps make the M&A process significantly faster and less complicated.
Litigation processes involve a large amount of documents that are highly sensitive or confidential. Legal teams need a VDR because these documents can be easily stolen or lost. VDRs enable lawyers and regulators to look over these documents remotely without compromising their security.
Sharing and signing important documents with potential buyers and investors is a time-consuming process if it is done offline. With the e-signature feature the majority of VDR providers provide the process can be made easier and accelerated.