Virtual data rooms are used to store, organise and share important corporate documents. They are particularly useful in M&A transactions when the sell-side requires a secure platform to look over documents while the buyer requires an accessible location to access them. Documents can include financial information, confidential records of companies and sensitive personal information.

Investors need a space where they can look over and read documents, particularly during fundraising rounds. Utilizing a VDR can help accelerate the process and increase collaboration between the two sides. The ability of a VDR to modify permission settings enables precise sharing of documents. A virtual data room, for example can limit access to laptops and desktops while disallowing printing or downloading to prevent sites accidental leaks.

Due diligence is a different use of a virtual dataroom, when an investment banker is assisting either the sell-side, or buy-side, of an M&A deal. This process involves the examination of reams and reams of documents that require organization and secure storage. Furthermore an investment banker requires an centralized place for document sharing with multiple parties to make the process easier.

Mergers and acquisitions are commonplace in the life science industry and require extensive documentation. Furthermore, companies in this field typically collaborate with each other and raise funds to expand their operations. Virtual data rooms can be used to facilitate these transactions as they reduce risk and offer an easy experience for all parties. They can also assist companies avoid legal pitfalls and enhance the outcome for complex processes.