A virtual data room is a digital repository to store and distribute documents that can be organized, shared and monitored all at the administrator’s discretion. This is a great way to support complicated projects and business processes which require the disclosure of confidential documentation to outside parties that are not within the firewall.
Online data rooms are most often used in M&A transactions, in order to assist buyers to complete their due diligence. The fact that all relevant documentation is in one place allows for quicker and more efficient review. It also assists in ensuring the confidentiality of.
Investment banks are among the most frequent users of VDRs that aid on both sides of the buy-side as well as the sell-side during financial transaction processes such as mergers and acquisitions. They are often required to access and review large amounts of sensitive documents, which require an efficient storage system and a simple collaboration with several stakeholders from different locations and time zones.
Life science companies operate in highly-regulated environments, and have multiple shareholders and partners. They also need to share sensitive documentation every day. They typically have to raise money or prepare for an IPO. VDRs are a safe place for collaboration and sharing, with a detailed activity log that allows you to keep track of who has accessed what documents.
Top data room providers offer many useful link features to simplify document management and collaboration. These include a simple user interface, easy multi-project management with the ability to personalize permissions for each user, and a 24-hour support team. They also provide various pricing options, with many of them offering an annual subscription model that offers a lower price per project, as well as the ability to stop and restart projects at will.