A virtual data room (VDR) is an application platform that lets you transmit confidential documents via the internet. Its goal is to improve collaboration among stakeholders by making sensitive documents accessible from any location connected to the internet. VDRs are frequently used in M&A transactions. However, their flexibility makes them an excellent choice for any company who needs to securely share information.
When businesses collaborate with each for the production of products, build structures, or offer services, it’s normal for partners to share various documents that require a high degree of security. A VDR helps these organizations streamline their due diligence processes and collaborate effectively on project.
M&A transactions are notoriously time-consuming, and it’s important that all parties involved can access the right information at the right moment to meet their due diligence deadlines. A VDR allows all stakeholders to examine documents on one platform without the need for expensive paper storage, in-person meetings or courier services.
Investment banking processes like IPOs, capital raising, and M&A require large amounts of document sharing that a VDR is able to handle. The most modern VDR providers, such as DFIN’s Venue, are also equipped to use artificial intelligence capabilities to automatize workflows and speed up review of contracts. This significantly reduces workloads and eliminates duplicate requests, which allows users to concentrate on tasks that require human input. The most recent VDRs also have granular permissions for documents which allows administrators to regulate the information that each user is able to print and view in every folder and file within the data room.