For companies seeking to make important decisions like M&A transactions or capital raising, it is essential that all relevant information is accessible. This can involve sifting through tens or thousands sensitive documents that could be at risk of being hacked, data breaches, and other security threats. There is an answer that combines the access to information with secure documents and collaboration tools. It’s called the virtual information room (VDR).
A VDR is a business software tool that facilitates simple, secure and transparent data sharing in due diligence processes. It is specifically designed to serve the M&A and private equity markets but is also used by anyone who wants to carry out major deals or projects. It’s a cloud-based secure repository that stores critical documentation that includes financial statements as well as legal agreements.
The best VDRs are those with a clear folder structures, which makes it easy to navigate. They also https://www.dataroommart.com/best-identity-management-software-for-2021 have security options that can be customized to allow users to restrict access by setting timeouts or auto-expiration, putting restrictions on printing, displaying and downloading documents, as well as generating reports on document activity.
VDRs are usually hosted in data centers that have industry-standard security features, like fire suppression, biometric access control, and offsite backups of data. They also are accessible worldwide, allowing investors and potential buyers to access important documents without having to visit your company’s headquarters.