A virtual dataroom is a storage of data that can be used to share sensitive documents in a secure way. Typically, companies use VDRs to help facilitate the due diligence process in M&A deals or other business transactions.
Buyers must go through numerous documents prior to closing a deal, including contracts, financial statements and intellectual property information. This data can be a major setback to your company if it gets into the wrong hands.
Historically, businesses have used physical storage facilities to house the data during due diligence. These facilities do not come without their limitations. For example only one bidder, or team can access documents at a timethis can lead to delays. It’s also difficult to locate and look over these documents.
With the help of a virtual data room you can eliminate these issues and complete M&A deals much more quickly. A VDR lets you customize your document library and is easy to use. It also provides secure access to various stakeholders all hours of the day. You can also control what information is displayed, so you are certain that it is only looked at by those who have the right to view it. You should also choose a VDR with other features, like audit trail tracking and customized tools, to increase security. This will ensure that your due diligence is successful. LeaksID is a free service which will assist you in learning more about the secure online repository that we use to conduct due diligence.