A virtual data room is a safe internet platform to upload and share confidential information with external parties. These systems allow companies to simplify complicated business processes such as M&A due diligence, IPOs, or fundraising by providing all stakeholders with secure and easy access to sensitive information. The entire process is recorded in an audit trail to ensure security and transparency.
The most popular use for online data rooms is M&A due diligence. The process involves both the sell-side as well as the buy-side in a financial transaction reviewing important documentation. To prevent disclosures that aren’t needed, it’s critical that all documents are scrutinized in a secure environment. VDRs provide the perfect solution as they allow both parties to read all relevant documents in one location and with customized permission settings.
Many companies provide templates to help make the due diligence process simpler. They include folder structures to create an efficient filing system and an easy drag and drop upload interface. This lets users build and populate their online data room in a speedy and efficient way, which saves their valuable time and energy.
The best vdr for due diligence will also include customizable watermarks, branding features, NDAs and document labels that allow users to shield their sensitive information from unauthorized disclosure. They can limit access to certain folders and files, and cancel permissions for digital rights management remotely. We’ve used iDeals for the past five years and it has proven to be a great tool to us, especially in multimillion euro/dollar M&A transactions. The customer service team is always available to answer any queries that we might have.