What is a Virtual Data Room De?
A virtual dataroom de (VDR), is an online, secure repository which stores documents for business. It allows for the exchange of data between parties in a controlled environment and helps companies conduct due diligence in M&A transactions such as loan syndication, private equity and venture capital deals. VDRs also provide an alternative to physical datarooms for storing documents in the event of disaster or in situations where resources are scarce.
When mergers or acquisitions are made, significant amounts of information is shared between parties. This includes sensitive corporate documents and intellectual properties. It is imperative to protect this information for compliancy and privacy reasons. Utilizing a VDR streamlines communication, protects information and ensures compliance. When choosing a VDR, choose one that is fully integrated with your IT systems and business workflows. Firmex is a great option that can be customized to fit your brand and has highly adaptable interfaces. Select a service that offers 24/7/365 customer support and has the industry knowledge to understand your business’s processes.
When looking for a VDR ensure that it can provide granular permissions for users depending on their role and need-to-know. It should also allow MFA and user login monitoring in order to check IP, Device and Location for unauthorized access. It should also offer a variety of tools for reporting that will assist your team gain insight from the data stored in your VDR. In addition, make sure the platform is easy to use for both you and your potential buyer or investor.