A virtual dataroom, or VDR is an efficient way to share and protect confidential documents. Although investment bankers are among the most frequent users of this technology, the benefits can be used by companies of all kinds. Here are some of the VDR’s most popular uses:
M&A due diligence
A merger or purchase of another company requires sharing a large amount of documentation, often with third-party parties such as auditors and regulatory agencies. Having access to a secure, centralized repository of all this information can make the M&A process much faster and less complicated.
Litigation processes typically require large quantities of documents that are highly sensitive and confidential. These types of documents are susceptible to being lost or stolen, so having a VDR is essential for legal teams. VDRs provide lawyers and regulators to examine documents remotely without the risk of compromising security.
Offline sharing and signing important documents can be a lengthy process. The process can be speeded and simplified by using the eSignature feature provided by most VDR providers.