https://dataroomtoday.com/using-an-online-data-room-as-a-marketing-tool/

A virtual data room (VDR) is a secure platform where critical documents can be stored for the duration of an M&A transaction. These documents could include contracts or intellectual property documents, employee information capitalization tables, financial statements, and many other documents. This helps to expedite the due diligence process for the buyer as well as helping to secure the confidentiality of the information of the selling company.

Due diligence is the study that is conducted by a buyer, or potential investor to assess the company they are considering and its assets before engaging in the business of. The process has changed dramatically over time due to technological advances particularly when it concerns sharing sensitive information. Instead of having a physical space filled with filing cabinets that can be opened and closed by a variety of people online, VDRs are now accessible online. VDRs are the new method for companies to share files with investors and other stakeholders.

Many online VDRs adhere to strict security protocols. They are equipped with a variety of complex layers that work in concert to create a barrier against potential threats. Physical security includes backups that are continuous as well as data silos on private cloud servers, multi-factor authentication, and accident redemption. Security for applications includes encryption methods, digital waterstamping, audit trails, and permissions to allow for customized folder structure.

The ability of a VDR’s to integrate with existing processes and systems is another key feature that differentiates it from the competition. This lets users use the tools and software they like for the job, making it easier to reduce errors and speed up the M&A transaction process. Some VDR providers also offer cheaper plans based on the amount of data that is uploaded to the platform, the number of users, the size of storage, as well as the duration of the project. This can help businesses avoid costly overages and charges.