A virtual dataroom (VDR) is an online repository that allows you to upload and share confidential business documents. Its most popular use is to aid due diligence in M&A transactions, equity or debt syndication and venture investment and private equity. However, it could also be used to facilitate investor communication marketing, internal collaboration and communication between executives.
A reliable VDR has advanced features that help you protect your business information. It should, for example, encrypt files in storage and in transit to prevent unwanted leaks. It should allow you to assign permissions to specific levels and then revoke access immediately, even after the files have been downloaded to devices. It should also have digital rights management tools like dynamic watermarks that can hinder viewing by anyone who is not authorized.
Another major benefit of a VDR is its accessibility to the world. Because it is hosted in the cloud, it is able to be accessed by users from all over the world, without firewalls or other restrictions. This helps businesses to attract more buyers and enhances the value of their business.
Considering that the average virtual data room user has a low technical background, it is important that the system is as simple to use as it is possible. The best VDR providers like iDeals, Citrix and Datasite have improved their interfaces for due diligence and have made it simple to set up and navigate for all kinds of business users. They also offer robust support services to assist you with any issues that might arise during the VDR installation process.