There are a myriad of virtual data rooms (VDRs) available. You can use them for due diligence, collaboration, or storage projects. Getting the right solution to meet your needs is vital – you want to ensure that your files are accessible, able to be shared or downloaded in a secure manner, and the information is kept private throughout the day.
Due Diligence
One of the most popular use cases for the use of a virtual data room is due diligence during M&A deals. This involves sharing sensitive information between two or more parties, such as financial records, legal documents and even employee information. A VDR allows the seller and buyer conduct due diligence in a structured, secure and controlled manner. During this stage, it is important to keep track of the data that has been accessed and by whom to ensure there aren’t security breaches or leaks of sensitive data. Screenshot and watermarking security can help to prevent this from happening in the due diligence phase.
Preparation
A preparation VDR is a useful tool to assist your team get organized prior to when the full due diligence process starts. This lets you upload documents and other data early to get everything ready to go when third parties are invited in and help create useful process efficiencies along process. The best virtual data rooms for preparing will allow you to modify document permissions based upon roles, folders and even files and documents. This ensures that only the information you require can be viewed.
