A VDR (virtual data room) is an online «clubhouse» where businesses gather to discuss confidential business documents and share files with others. The most effective VDR software enables collaboration while protecting privacy and intellectual property. It comes with a variety of features including watermarks, encryption and messaging and chat.
VDR software is most commonly used to aid in M&A deals as well as other due diligence projects. A VDR not only makes the process quicker and easier, but also provides an audit trail for every file activity. This helps companies meet regulatory and compliance requirements such as HIPAA.
If a company is seeking more to sell itself or enter into an investment partnership, it’s usually required to share confidential documents with external parties. This could include service providers that provide the essential function and investors, as well as other stakeholders outside of the company. In these scenarios, a robust VDR that is protected by strict security measures can help simplify the process and reduce the stress of executives at the top.
When selecting a VDR select one with a user-friendly and intuitive interface. You should also choose a provider that is transparent in its pricing and features that are utilized and customer service that is top-of-the-line. Most VDR providers offer trial versions for free, which allow you to try the platform before making a purchase. You should also be able modify the features you use and set permissions according to your specific role. This will enable you to maintain control of sensitive information even when sharing with remote board members.