A virtual data room permits companies to share documents with a select group of outside parties. This is usually done via secured links that have multiple layers of permissions. This allows instant sharing while also preventing leaks of data. VDRs can be used to share confidential financial documents in M&A transactions or loan syndication. Also, you might want to share sensitive intellectual property in the context of a pharmaceutical collaboration.

Mergers and Acquisitions

Due diligence is a major task for companies involved in mergers and acquisitions. A VDR allows teams to securely and swiftly share confidential files as well as with remote board members. The top VDR providers can provide upload speeds of 5MB per second, SmartLock that revokes access to documents even after downloading, built-in redaction, DocuSign integration and dedicated project managers who can help complete deals more quickly.

VDRs can also offer detailed activity tracking and reporting for a level of transparency and accountability in the course of due diligence. This includes specific information on who viewed which files and the actions they performed on each file. This information assists in making business decisions during the deal process and ensures compliance with regulatory requirements. Users are able to quickly and easily locate answers to their questions from experts in their team or external advisors using unilateral contract signing software VDRs that have an integrated Q&A functionality.