If a company requires external third parties to look over its information, whether for due diligence or collaboration it embargo questions can be a challenge to share sensitive information without risking breach or violating compliancy. Virtual data rooms facilitate document sharing and streamline processes so companies can effectively complete a variety of business-related events.
VDRs are most often utilized for mergers and acquisitions, however any business can benefit from a simple system that consolidates files instead of sending them back and forth via email. Virtual data rooms can aid you simplify the process of obtaining money from investors, or planning for an IPO. They can also help people involved in the process to locate the documents they require in an organized way.
A good VDR should also offer granular document permissions to limit access to certain documents or folders. Many providers offer comprehensive report and logging tools that monitor user activity, including who read what documents and when they viewed them. A powerful search feature and logical file folder structure allow users to navigate their way through the data and find what they’re looking to find quickly.
A key feature is the ability for users to design customized document views based on their roles or the responsibilities they have. The ability to grant specific viewing rights ensures that only the relevant documentation is viewed and helps to prevent the loss of productivity due to miscommunication. Many providers also provide an interface for drag and drop that makes it simple to upload files.