Posted on Leave a comment

What Is a Virtual Data Room?

Virtual data rooms are typically employed by companies to share confidential documents with multiple parties. These platforms are software-based and permit authorized users to access documents from any device. They place security first over sharing capabilities, and many offer multiple layers of protection to ensure that documents remain private.

Most VDR providers offer a vast variety of support services to allow customers to get the most from their platform. There are also videos for training, live chat in the app, and phone support. The majority of modern VDRs run on the cloud and are compatible with mobile devices. This makes them easy to use from anywhere, anytime.

Virtual data rooms can be used to share sensitive data and are particularly useful for complex financial transactions like mergers or acquisitions. Before an acquisition can be approved, both the buy-side and sell-side will need to review the documentation and approve it. Utilizing a VDR to keep and share the necessary documentation will ensure that the business is audit-friendly and compliant with the least effort.

Some of the key features that most VDRs include are redaction (blacking out areas of a file so personally-identifiable information stays private), fence view (which shows only a small part of a document and prevents screenshotting) and granular document permissions (controlling who can read, edit, download, print and upload). Some VDRs even have branded watermarks to ensure a uniform look and feel across all documents downloaded or printed on the platform.

Leave a Reply

Your email address will not be published. Required fields are marked *