The business world is filled with situations where external parties have to examine company data, but not always from a hostile or competitive standpoint. The leadership teams must often find a way to allow external reviewers access to the information they require without compromising their personal data. Virtual data rooms are the most efficient way for many companies to share important documents with third party auditors and external stakeholders.
The most common use of VDRs is to facilitate M&A procedures, and it’s not hard to understand why. These transactions require a significant amount of documents that contain sensitive and confidential information, which is why it’s essential to have an online repository to exchange documents in a safe and secure manner.
For companies that are just starting out, VDRs can be used to help streamline the due diligence procedure while making it easier for investors to look over the company’s documents. This helps to speed the process of fundraising and reduces the risk of failure to capitalize on business opportunities due to improperly handled information.
VDRs can also be utilized to facilitate commercial real estate transactions. VDRs are used by CRE professionals for due diligence on asset portfolios and acquisitions. VDRs can also be used to refinance, debt financing, as well as various CRE-related applications like contract management, data collection and reporting. The most effective VDRs are those with simple interfaces, which eliminates manual work, and incorporate features like automated redaction. This makes it easier to speed the process. A few of the top-rated options include SecureDocs which provides an unambiguous pricing model as well as practical features that actually get used, Datasite, which provides a streamlined user experience, and ContractZen that integrates VDR and contract management and electronic signatures into one powerful package.