A virtual dataroom (VDR) can be an online, secure platform that is used for due diligence or confidential transactions. VDRs are custom-designed platforms that are designed to handle large volumes of sensitive documents. They offer increased security, advanced organization capabilities, and compliance. They differ from other storage solutions for files such as Dropbox, Google Drive and Box because they are special features to simplify and speed up projects that require document sharing.
These features include granular access permissions watermarking in real-time vectors and classification labels that mark the files. They also track activity at the page level to show who was able to view what and for how long. They also provide audit trails that are important for meeting compliance requirements and providing proof of due diligence. They also have advanced features like redaction, which lets you hide personal information by blacking out certain areas of your files and fence view which blocks screenshots.
VDRs can be accessed by people around the world because they are hosted on the Internet. This global accessibility can increase the competition among potential buyers and allow a business to be purchased at a higher cost than it could in a local market where investors are limited to a particular region.
VDRs are a great way to collect data and collaborate on M&A plans, investment funding rounds, legal cases, and much more. They are more affordable than physical rooms, because businesses only purchase a secure computer system and the cost of hosting the data online. They also can reduce travel expenses, as potential buyers can look over documents from the comfort of their offices instead of having to travel to office of the seller.
