The most common application of a virtual dataroom is to manage market transactions such as mergers and acquisitions. In this case buyers require access to large volumes of confidential documents that are stored in various locations. This means that a company has to rent a space to store the files and hire security services for 24-hour surveillance. This is not necessary and operational costs are reduced by implementing a data room.
Additionally to that, the VDR can help a company keep track of what documents are used and by who. Administrators can determine which documents an individual may view, download and print. It can also include dynamic watermarks on documents, which indicate who viewed them when. This ensures that the confidentiality of data is not lost.
The platform allows the sharing of sensitive documents with other parties such as lawyers or accountants. This is particularly important when a company has to reveal sensitive data as part an audit or another regulatory process. A virtual data room makes it easy for external parties to examine the company’s records without risking leakage or compliancy violations.
If you’re planning an M&A deal, going public or collaborating on contracts with clients, the appropriate VDR will assist you in getting the job done and remain legal. Find a VDR that offers flexible functionality and features, including AI functions that simplify and accelerate contract review. DFIN’s Venue for instance is a service that uses AI to deliver significant efficiencies and insights during due diligence by cutting down on repetitive requests, automating tasks and allowing full-text search and auto-redaction.