There are a myriad of scenarios where companies can use the virtual data room to facilitate secure document sharing without the need for an expensive physical facility. The most popular VDR use is during due diligence during mergers and acquisitions. However they can also be utilized to share documents with business partners and other parties.
For M&A deals using a virtual data space is a great option because it allows both buyers and sellers buyers to look over documents in one place without exposing sensitive information or risking the risk of committing a breach. In the same way, investment bankers frequently utilize VDRs to share confidential documents with clients and other stakeholders for M&A and capital raising processes. Technology firms make use of VDRs to share design ideas as well as manufacturing information with teams that are spread across the world. And consultancy businesses employ them to detect trends in big data that can inform corporate strategy.
A VDR can help cut M&A costs by cutting down on printing and travel costs, and by making documents more accessible than a physical repository. It is also easy to customize the storage system to suit every project, and to grant restricted accessibility on a document by document basis.
Users can access VDRs using their web browsers, meaning they can review documents from anywhere with internet access. Administrators can get detailed reports of user activity including who has viewed which documents when, and at what time, as well as where. This can provide information that may not be available in physical storage, where access logs can only reveal what's being used and by whom.