Data room service providers equip interest groups, firms and corporations with an online platform that is secure to upload and store information, as well share it. Typically, they store valuable documents such as financial statements and legal agreements, or intellectual property. Many VDRs also offer administrative services that complement their software capabilities that include basic administrative tasks, to customized advice and guidance.
The most common use of a virtual room is related to the due diligence process that is associated with M&A, but they are also used by a range of businesses when it comes to business transactions. Due diligence in M&A requires extensive data sharing and document review. It is essential that both parties have access to information at their own convenience while ensuring security.
A reliable online dealroom allows administrators to monitor what is happening, including who was able to access what, when, and what was done. This allows them to react in a timely manner and ensure that sensitive information is protected. Many of the established data room providers offer a number of reporting tools as well as the ability to document with watermarks, track downloads and disable screenshots.
When selecting a virtual data room, it’s important to think about the amount of storage space you require. Text documents require less storage space than high-resolution photos, so it is important to make sure you meet the storage requirements for data stipulated by the provider you’re considering. Look for a solution with different file formats and a user-friendly interface for both mobile and desktop devices.