Online data rooms are an easy and secure platform for sharing and working on sensitive documents. They are utilized in a variety of projects that require high security and privacy, such as M&A transactions, venture capital and private equity financings such as loan syndication, lending and borrowing, as well as due diligence and litigation support.
One of the main use cases for online deal rooms is M&A due diligence, where both buy-side as well as sell-side businesses have to create and review massive volumes of documents. Having all the documentation in one safe location allows both parties to make informed decisions quickly and reduces the risk of a deal failing due to discovery of sensitive information.
To safeguard sensitive information Virtual data rooms provide granular document access permissions which allow administrators to define guidelines for each folder and files within the repository. They can also enable redaction, fence view (which blacks out certain areas of files to ensure personally-identifiable data stays private) and prevent screenshotting. Most VDRs also have security certifications to prove their reliability. These include ISO 27001 and SOC 1/2/3.
Online deal rooms are also characterized by their seamless integration through APIs with the existing tools and system. This makes them compatible with a number of well-known programs and applications including Microsoft Office, email, chatting apps and more. This makes the workflow easier, improves communication and collaboration. A lot of online deal rooms provide 24/7 customer service via various channels, as well as a range of instructional videos to help users get started.