There are a myriad of scenarios in which companies can utilize virtual data rooms to allow secure document sharing without the need for a costly physical facility. The most popular VDR use is during due diligence during mergers and acquisitions. However, they can also be used to share documents with clients, business partners as well as other stakeholders.
For M&A deals such as M&A, a virtual room is the best option since it allows both the sell-side as well as prospective buyers to view the documents in one location without exposing sensitive information or committing any breach. Similarly, investment bankers often use VDRs to share private documents with clients and other stakeholders in M&A and capital raising procedures. Technology companies utilize VDRs to communicate manufacturing and design information across teams spread across the world. Consultants make use of them to discern patterns from large data sets that can help inform corporate strategy.
A VDR can reduce M&A expenses by decreasing printing and travel costs, and also by making documents more accessible than physically stored. It is also easy to customize the storage structure according to every project, and to grant restricted access to documents on a document-by-document basis.
VDRs are generally accessed via an internet browser, which means users can view documents anywhere they have internet access. Administrators can view complete reports on user activity such as who viewed what documents and when they were viewed, as well as the location. This gives insight that might not be available with physical storage, where access logs can only tell you what’s being read and who is accessing it.