In the wake of numerous prominent breaches of information, companies have increased the need to share confidential documents securely with outside parties. A virtual information room (VDR) can allow users how to prevent data corruption to access documents from any device connected to the internet allows for a variety of types of document sharing and due diligence processes. These rooms can be used to serve a variety of functions and are typically used in M&A deals or venture capital financing and other transactions that require extensive document sharing and analysis.
To create an VDR you should first find an accredited service provider who offers a transparent pricing model and support for customers. Then, you can transfer existing data onto the platform. Make sure that the documents are properly indexed and arranged for easy retrieval. Also, make sure that permissions for users are set according to roles. The last thing to do is ensure that your team is properly trained to use the VDR. This includes ensuring that they understand the security protocols and the best practices for managing documents within the platform.
VDRs can be used to manage intellectual property like trademarks as well as patents and research data. They are designed to stop IP theft and guard this data from misuse by implementing features such as watermarking, selective dissemination, document expiry and download restriction.
In an M&A process it is normal for a significant amount of confidential information to be exchanged between the selling and buying company. This can include financial documents and records of legal nature, and employee data. A VDR helps to organize the data and allows both parties to conduct due diligence swiftly and efficiently.