A virtual dataroom (VDR) can be an online, secure platform that is used for due diligence or confidential transactions. VDRs are specially designed platforms to handle large volumes of sensitive documents. They offer enhanced security and compliance adherence, as well as advanced document organization capabilities. They are different from general file storage options like Dropbox, Google Drive and Box due to their specialized features to accelerate and streamline projects that require sharing of documents.
Some of these features include the ability to control access at granular levels, real-time vector watermarking, and labels to categorize files. They can also track back to the page to display who has viewed what for how long. They provide an audit trails that are vital to demonstrate compliance and proof of due diligence. They also support advanced features like redaction which allows you to block personal information from view by blocking out certain areas of the file and fence view that blocks screenshots.
VDRs can be accessed by users around the globe because they are hosted on the internet. This worldwide accessibility can boost the competition among potential buyers and allow a business to be purchased at a higher cost than it could in a local market, where investors are limited to a specific region.
VDRs are a great way to collect information and collaborate for M&A plans, investment funding rounds, legal cases and more. They are cheaper than physical rooms since companies only need to pay for the secure computer system, and the costs of hosting the data online. They also reduce travel expenses since potential buyers are able to look over documents from their offices, without needing to travel to the office of the seller.
