A virtual data room service is a software product that provides an online repository for securely sharing and hosting confidential data. These services are utilized in various business transactions and processes including M&A, litigation, and fundraising. They enable business teams to efficiently and securely share documents, foster collaboration, safeguard sensitive information and automate the process.
VDRs can be accessed on any device, including a laptop, desktop computer, or mobile phone. A majority of modern providers provide 24/7 support in-app. Typically the support team is multilingual, and comes with a an online help center with videos about the products. VDRs offer a cost-effective alternative to physical data rooms. Their customer support is usually more personal than regular cloud storage.
Most VDRs offer a free trial period that allows users to try out the software and decide whether it is suitable for their needs. This is a great way to get familiar with the program, learn how it performs in the real world and whether it can be easily adapted to a IT workflows of your company.
Due diligence in M&A deals is the most popular use of VDR. M&A deals require a large amount of documents, and it’s crucial that the relevant information is made available to potential buyers in a safe environment without putting at risk breaches and compliance violations. To ensure that documents are properly prepared and reviewed, the businesses involved typically rely on specially-designed virtual data rooms to conduct M&A due diligence. Companies can save costs associated with sending and receiving large amounts of documents.