Virtual data rooms are an essential component of many industries that require secure document management, storage and sharing. This is especially true in M&A transactions in which sensitive information needs to be transmitted securely and viewed for due diligence. A purpose-built VDR is often more efficient and cost effective than physically transporting confidential documents between parties.
Virtual data rooms are much more intuitive and user more user-friendly than messaging or email. The best providers have an intuitive interface that doesn’t require a lot of instruction. They also permit more granular permissions so that administrators can decide whether a document can be printed, downloaded or read. Furthermore, they can monitor the activity of users and determine who is spending the most time on any particular document page, so they can analyze the degree of interest. The top-of-the-line VDRs also incorporate eSignature tools like DocuSign that allow users to sign contracts and documents directly from the platform.
Many other industries rely on virtual data rooms for their due diligence processes, such as capital markets and banking (for loan syndication and venture capital and private equity deals) and life sciences companies (for everything from clinical trial easy file sharing for due diligence results to HIPAA compliance) and engineering firms (for collaboration via project-based projects). Regardless of the industry it is a common belief that they are more productive by using a virtual data room since all documents related to work are stored in one place instead of being scattered across several locations and devices. They also can be accessed anytime, any time.