A vdr to deal making is a secure cloud-based repository that lets companies share and protect crucial business information with customers executives, investors and other company leaders through the Internet in a controlled environment. Other document sharing services are referred to by the terms collaboration tools or file-sharing services however they do not offer the many features which make virtual rooms the ideal choice for facilitating transactions and safeguarding sensitive information.
While mergers and acquisitions (M&A) procedures are the most common use scenario for a VDR however, the software can be used for any business transaction that requires the secure exchange of sensitive data. This includes financing, such as raising capital and IPOs or strategic partnerships that involve intellectual property and proprietary information between various organizations.
When choosing a VDR to use for deals, businesses should look at transparent pricing structures, ease of installation and usage, and an archive centrally located to be able to handle post-closing demands, like the filing of regulatory documents or audits to ensure due diligence. A reliable provider will also provide a variety of document engagement and user metrics, such as activity reports, data on file viewing and more.
Another aspect worth considering is the possibility of customizing the VDR to meet specific needs. This could mean adding a logo of the company or creating custom login pages and creating granular access control to ensure that individual files are restricted from printing or copying past certain limits. VDRs should also incorporate a variety of features at the file level such as watermarking, digital rights management properties. These can protect sensitive data from accidental distribution.