A virtual dataroom, or VDR, provides an effective way to share and secure confidential documents. While investment bankers are among the biggest users of this technology, the benefits are available to businesses of all types. Here are some of VDR’s most common uses:
M&A due diligence
A merger or acquisition by another company requires sharing a large amount of documentation, often with third-party auditors, such as audits and regulatory agencies. Accessing a secure, centralized repository for all of this information assists in making the M&A process significantly quicker and less complicated.
Legal Cases
The litigation process involves a lot of documents which are extremely sensitive or confidential. Legal teams require a VDR since these documents can be easily stolen or lost. VDRs give lawyers and regulators the ability to examine documents remotely without compromising security.
Real estate
Sharing and signing important documents with investors and potential buyers can be a long process when done offline. This process is able to be speeded and simplified by using the eSignature feature provided by most VDR providers.