A virtual data room is an online repository for storing and sharing documents that can be shared, organized and monitored all under the administrator’s control and discretion. This is a great way to support complex projects and business processes which require the disclosure of confidential documents to outside parties that are not within the firewall.
Online data rooms are most often utilized in M&A transactions, in order to assist buyers with their thorough due diligence. All relevant documentation being stored in one location allows for a faster and more efficient review and helps to ensure the confidentiality of.
Investment banks are the most frequent users of VDRs which aid both the sell-side and buy-side during financial transaction processes such as mergers and acquisitions. They need to examine and access large amounts of sensitive documents, which requires secure storage and collaboration between several stakeholders across various time zones and locations.
Life science companies operate in highly-regulated environments, and have several shareholders and partners. They also have to share sensitive documents on a daily basis. They frequently need to raise money or prepare for an IPO. VDRs are a secure and safe environment for collaboration and sharing with a detailed activity tracker to make it easy to track who has accessed which documents.
The best data room providers offer numerous features that make document management and collaboration easier that include a streamlined user experience, straightforward multi-project management, the ability to assign specific permissions to different users, and a 24 hour dedicated support team. They also offer flexible pricing options, with the majority of them offering an annual subscription which offers a lower cost per project, as well as the ability to start and pause projects at any time.