The Role of a Virtual Data Room

A virtual dataroom is a web-based secure storage facility for sharing private information. Typically, VDRs are used during M&A due diligence, but they’re also useful in other collaboration processes, such as auditing, tenders, regulatory reviews and integration after M&A. Virtual data rooms are an excellent tool that can be used by any business to streamline the process of collaboration with both internal and external stakeholders.

With a VDR the entire user can access the documents via any web browser or secure agent applications. The administrator can restrict the access to certain folders or documents. Furthermore, they can limit who is able to print or take screenshots of their screens. The administrator can also limit the amount of time that users are allowed to connect to the VDR, as well as their IP address. They can also create an ‘fence view’ mode https://dataroomdc.com/what-is-an-online-data-room-and-why-would-you-need-one/ that limits the amount of the document users can view if they’re concerned that someone could try to sneak a peek at sensitive information.

A VDR can be used by businesses with large volumes of sensitive documents to cut down on the amount of time required to complete a task. The VDR can also save money on printing and shipping documents. Users can also examine documents without having to physically visit an actual location. In the case of M&A due-diligence, a VDR is a better option than paying for airfare and hotel accommodations for bidders or experts who might otherwise need to travel to the headquarters of the company to review the documents.