The Benefits of a Virtual Data Room Business

A Virtual Data Room Business (VDR) is an secure repository for sharing important private documents, with the capability to track and record information access. VDRs are utilized across a range of business and industry functions. They are particularly useful in the process of a transaction, which involves third parties having access to huge amounts of confidential information. These third parties may be authorised employees or solicitors virtual data rooms business working on behalf of either the seller or buyer. It is usually difficult to share this information via hard copy or by email and an online VDR makes it easy to coordinate of due diligence.

VDRs are often utilized by companies that are seeking capital, going through an IPO, or undergoing a merger and acquisition (M&A). During the fundraising stage a company will need to share information with a number of investors, hold events and roadshows, where they may be speaking to up to fifty investors within one week. A Virtual Data Room helps to manage this influx of third access and information while also ensuring that you control who has access to documents and data.

Investors usually seek an VDR before offering a term sheet, to ensure that they have easy access to the company, along with any other material that they can access online. Once a deal is complete it can be helpful to use a VDR to update investors on a monthly or quarterly basis with the main highlights, such as financial performance and other important information about the business. Some companies prefer to provide their investors access to a KPI dashboard that they can access in real-time.