A vdr for deal-making is an encrypted, cloud-based repository that helps companies share and protect crucial business data with clients as well as investors and the company’s leadership through the Internet in a secure environment. Other document sharing services are referred to by the terms collaboration tools or file-sharing services, however they do not offer the many features which make virtual rooms the ideal choice for facilitating transactions and safeguarding sensitive information.
While mergers and acquisitions (M&A) procedures are the most common use case for the VDR it can be applied to any business transaction that requires the secure exchange of sensitive data. This includes financing processes such as raising capital or IPOs, as well as strategic partnerships that require the transfer of intellectual property and proprietary information between different companies.
When choosing a VDR for the purpose of contracting, companies should think about transparent pricing structures, the ease of deployment and usage, and an archive central to be able to handle post-closing demands, like audits or regulatory filings to support due diligence. A reliable provider will also offer a range of document and user engagement metrics, such as activity reports, viewing statistics for files and more.
Another important aspect to consider is the possibility of customizing the VDR to meet specific needs. This can include adding a logo to the VDR or constructing custom login screens. It could also include strict access controls that stop files from being printed or copied beyond specified limits. VDRs must also include a variety of file-level features such as watermarking, digital rights management properties. They can help protect sensitive information from being distributed unintentionally.
