A virtual data room is a secure online platform that allows sharing and uploading of sensitive information with third parties. These systems assist in streamlining complicated business processes, such as M&A due diligence or fundraising by providing all stakeholders secure and easy access. Furthermore the entire process is documented in a complete audit trail to ensure transparency and security.
Due diligence in M&A transactions is the most popular use of online data rooms. Both the sell-side as well as the buy-side of a financial transaction are required to review the relevant documentation. In order to avoid disclosures that aren’t needed it is vital that all documents are scrutinized in a secure environment. VDRs offer the best solution, allowing both parties to look over all relevant documents in one location and with a custom permissions settings.
Many suppliers offer templates to help make the due diligence process easier. They include folders for a logical archiving system and a drag-and-drop upload interface. This allows users to build and populate their online data room in a quick and efficient way, saving them valuable time and resources.
The best vdr that is designed for due diligence will also feature customized watermarks and branding features, as well as documents, NDAs and document labels to enable users to protect their personal information from unauthorized disclosure. They will also be able to restrict access to specific files or folders and also remove permissions remotely for digital rights management. We have been using iDeals from 2005 and it has proved to be a valuable tool for us, especially in the course of a variety of M&A transactions worth millions of dollars or euros. The support team for customers is always there to assist with any questions we may have.