A virtual data room (VDR) is an online, secure space for storing and sharing time-critical documents. It’s utilized by banks and other financial institutions for due diligence during M&A and licensing, loan syndications and venture capital deals. The VDR creates a single space for document review and access for multiple parties simultaneously, with strict security controls. It also allows real-time collaboration for projects that have complicated workflows. It can be hosted in the cloud or on-premises and is compatible with existing systems for simple deployment.
VDRs are more robust than the standard file-sharing software which is ideal for basic projects, but not enough to handle complex projects like due diligence. They feature robust security features that ensure security and smooth processes. They can prevent costly misunderstandings and delays due to improper versioning and lost files through preventing sensitive data from being shared by non-authorized individuals. Additionally, they can help prevent costly information breaches and compliance violations by providing a central repository of all information.
Choose a provider with a flexible pricing structure and a user-friendly interface. A per-storage option allows you to pay only for the amount of storage required. Some providers also offer flat rate options that eliminate overage charges and create a predictable budget.
The most popular VDRs include Firmex from iDeals as well as Intralinks. iDeals offers an easy-to-use interface and powerful tools to make the M&A process more efficient and less stressful for all parties. Its integration with DocuSign and eSign can cut down time and gives unlimited storage and users for a low cost. Its powerful analytics automated reports, and integration with DocuSign will provide insights into the activities. This ensures that everyone is aware of what is happening at any time.