A virtual dataroom, or VDR, provides an efficient way to share and protect confidential documents. Although investment banks are among the heaviest users of this technology, the benefits can be utilized by businesses of all types. Here are a few of the most common uses for the VDR:
M&A due diligence
Merging with or buying another company requires a huge amount of documentation that must be shared, usually with third parties, such as auditors and regulatory bodies. Being able to access an organized, secure repository for all this data helps make the M&A process significantly quicker and more efficient.
Litigation processes involve large volumes which are extremely sensitive or confidential. Legal teams require a VDR as these documents can be easily lost or stolen. VDRs give lawyers and regulators the ability to examine documents remotely without compromising security.
Sharing and signing important documents with potential investors and buyers can be a lengthy process if it is executed offline. With the e-signature feature the majority of VDR providers provide the process Web Site can be made easier and speeded.