The Benefits of Virtual Data Rooms

A virtual data room (VDR) is a software platform used to transmit confidential documents via the internet. Its purpose is to improve collaboration between stakeholders by making sensitive documents available to anyone connected to the internet. VDRs are commonly used in M&A transactions. However, their flexibility makes them a good option for any business who needs to securely share information.

When companies establish partnerships to produce goods, build buildings, or provide services, they usually trade a variety of documents that need to be secured. A VDR can assist these companies to streamline their due diligence processes and make it easier to collaborate on projects.

M&A transactions are notoriously long, and it is important that all parties can access the correct information at the proper time to meet their deadlines. With a VDR the entire company’s stakeholders can review documents using the same platform without the expense of paper storage, meetings in person, and courier services.

Processes in the field of investment banking like IPOs capital raising and M&A require large quantities of document sharing that a VDR is able to handle. DFIN’s Venue is one of the most advanced VDRs. It uses artificial intelligence to automate workflows and speed up contract review. This reduces workloads, eliminates duplicate requests and allows employees to concentrate on tasks that require human input. The latest VDRs also offer granular access rights for documents, allowing administrators to control the information that each user is able to see and print from every folder and file within a data room.