5 Use Cases For a Secure Virtual Data Room
Virtual data rooms facilitate better collaboration and secure document sharing in a controlled space. They are used across a wide range of industries to manage a range of documents including financial records, business plans customers’ data, and other sensitive information. They offer advanced document management capabilities that offer enhanced security and compliance adhesion to the benefit of business partners and other stakeholders. Cloud storage platforms such as Dropbox and Google Drive may offer file-sharing, collaboration and other features but they don’t have the specific capabilities for business data sharing.
M&A due diligence
M&A due-diligence is a common application for a VDR because it requires the review and submission of large amounts of documents that could contain confidential or proprietary data. A VDR can ease the burden and time needed to complete M&A diligence by allowing parties access to information from anywhere they have an Internet connection. Additionally, access to the documents is able to be revoked in the event that the deal does not close.
Law firms
A virtual data room is an excellent tool for attorneys who wish to share files with clients and partners as well as regulatory organizations. Virtual data rooms allow attorneys to collaborate and work on legal cases from any location with an Internet connection improving workflows and productivity.
Real estate industry
When a business is looking to buy or sell property, it may need to share documents with several interested parties that include potential buyers as well as investors and regulators. Utilizing the VDR to organize and share the documents can speed the process and avoid loss of sensitive information.
Fundraising
Startups and enterprises can need to raise funds to invest in new ventures, or to expand into other markets. A VDR is the perfect solution to this, as it offers transparency and a good organization of documentation. Additionally, an VDR can help reduce the risk of fraud by providing detailed audit reports.
You should look for a VDR with customizable branding. This will allow you to customize your login page and email templates. You will also be able install the most popular integrations. Consider the ways the VDR is secured by features like two-factor authentication and password protection. Also, granular permissions settings remote app wiping and granted permissions granular are all crucial. You should also check whether the VDR has compliance certifications such as SOC 1 and SOC 2, ISO 27001 and HIPAA. Lastly, make sure your preferred VDR supports redaction, which allows you to black out areas of the document to ensure personally-identifiable information remains private. This is a crucial feature for M&A deals and similar transactions.
