The most typical use of a virtual data room involves the execution of market transactions such as Mergers and Acquisitions. During this process, buyers need access to large volumes of confidential documents that are stored in various locations. A company has to rent a space to store its files and have security personnel to watch the space 24 hours a day. This is unnecessary and operational costs are reduced by implementing a data room.
A VDR can also aid businesses in keeping track of who has accessed documents and when. The administrator can set specific permissions for which documents users are able to access or print, as well as download. It is also possible to add dynamic watermarks on documents to indicate who has been viewing them and at what time. This helps ensure that confidential information is not compromised.
The platform also allows for the sharing of sensitive data with external parties, including accountants and lawyers. This is especially important when a business has to share sensitive information in an audit or another regulatory process. A virtual data room allows for external parties to examine the company’s files without putting at risk leaks or compliancy violations.
The best VDR will help you keep your compliance in check and finish the job regardless of whether you’re planning to complete an M&A, going public, or collaborating with clients on contracts. Find a VDR which provides a range of features and functions, including AI functions that can make it easier and faster to review contracts. DFIN’s Venue, for example, uses AI to provide significant efficiencies and insights during due diligence by reducing repetitive requests, automating tasks, and allowing full-text searches as well as auto-redaction.