In the course of business processes and transactions sensitive data needs to be shared. Traditionally, this is done through physical data rooms that require infrastructure, rent, security personnel and time to set up and manage. Virtual information rooms streamline processes, cut costs and allow for a more effective and faster outcome.
Some of the most common uses for a VDR include M&A transactions, in which large volumes of documents must be reviewed by bidders as part of a due diligence process. VDRs can also be useful for other forms of document sharing, including with service providers, investors or internal employees.
Law firms also make use of VDRs to share documents in various legal proceedings, such as litigation and arbitration. They can provide the right degree of privacy and also provide a central place for all pertinent data.
Private Equity and venture capital firms often review multiple deals at once creating massive documents that demand organization. VDRs allow them to systematically and securely organize their data to keep track of each deal and stay on top of the process.
Life science companies are always working on new products which require substantial amounts of research and development. Their R&D processes require high levels of security to safeguard confidential data and patient records. Virtual data rooms allow them to share data with clients quickly and securely without compromising their privacy.
Because of all these reasons, VDRs have become a trusted tool for secure reliable document sharing for professionals. They are a must-have tool for M&A transactions, board communications as well as IPOs, among others.