A virtual dataroom, also known as VDR is an efficient way to share and protect confidential documents. Investment bankers are the most frequent users of this technology, but it is also utilized by companies in all industries. Here are some of the most frequently used applications for a VDR:
M&A due diligence
A merger or purchase by another company involves sharing a lot of documents, usually with third-parties such as auditors and regulatory agencies. The ability to access a secure, central repository for all this information assists in making the M&A process significantly faster and less complicated.
Legal cases
Litigation processes often involve large quantities of documents that are highly sensitive and confidential. Legal teams require a VDR as these documents can be easily lost or stolen. VDRs offer lawyers and regulators to access documents remotely virtual data room without risking security.
Real estate
Offline, sharing and signing important documents can be a long process. This process can be speeded and made easier with the eSignature feature provided by a majority of VDR providers.