Virtual data rooms (VDRs) are typically used by lawyers, accountants and auditors of a business who need access to sensitive data without putting themselves at risk of an attack from hackers or a breach of compliance. A VDR designed for external parties is designed to allow them to access confidential documents online, without risk.
VDRs are also commonly used in M&A due diligence. Companies that are buying or merging need a secure system to store the relevant documents as well as prospective investors require an easy method to review it. A dedicated VDR helps the process be smooth and ensures that valuable information is only shared as needed. If a transaction does not close, access to the VDR can be revoked immediately.
Many VDR vendors offer a range of user management tools that allow you to manage the information that users view. Make sure that the platform you select has strong permission settings to allow you to restrict access to certain kinds of files or data as well as granular information such as file names and sizes. You should also pick the platform that offers granular auditing, including activity logs. This will give you full transparency on who has access to which files.
Also, if you’re planning to utilize your VDR for critical business processes which don’t difference between brokers and M&A consultants fit within the 9-5 working hours, look for a vendor that provides 24/7 assistance. It’s worth the cost to have a dedicated team on hand to answer questions and concerns.