A virtual dataroom (VDR) is an online repository that provides secure document storage and collaboration between various parties. It can be used as an instrument for business transactions requiring secure document management and storage like M&As or fundraising and due diligence.
VDRs offer a range of features that separate them from other file-sharing services, including physical data rooms. Some of the established VDR partners, for example provide security certifications such as ISO 27001, SOC 1/2/3, watermarking, customizable NDAs and at-a-glance reports.
The content of a VDR is targeted to specific groups. For instance companies in the field of life sciences could include documents that showcase their progress to potential investors (e.g. clinical trial results as well as HIPAA compliance) while ensuring the highest levels of data privacy (e.g. Intellectual licensing and intellectual property agreements.
For real estate transactions, VDRs can help disclose various forms of documentation including the title to the land investments records, land titles, and management documents. They can be used to present the complete, transparent outline of the history of the business and future plans. It’s an effective tool when it comes to closing a deal. A well-planned use of a VDR can help reduce the amount of physical paperwork and improve the efficiency of the M&A process. It’s a good idea to create a plan of the VDR before you begin. This will ensure proper organization of the folders and documents and facilitates easy navigation.