A virtual dataroom is a web-based, secure repository for sharing sensitive information. Typically, VDRs are used during M&A due diligence, however they can also be useful for other collaboration processes like auditing and tenders, regulatory reviews, and integration after the merger. Virtual data rooms are a valuable tool that can be utilized by any business to improve the process of collaboration with internal and external stakeholders.

With a VDR all users can access documents through a web browser, or secure agent applications. The administrator can set restrictions on who can access specific folders or documents. They can also restrict who is able to print their screen or take screenshots. The administrator can also limit the time that users can connect to the VDR, as well as their IP address. They can also activate the ‘fence mode’ which limits the amount of information a user can access. This is beneficial in the event of someone trying to steal an unintentional peek.

A VDR can be used by companies that require large quantities of sensitive documentation to reduce the time needed to finish a project. The VDR will also save money on shipping and printing documents. Users can also look over information without physically traveling to a physical location. In the instance of M&A due diligence, a VDR can be top article a more affordable alternative to paying for the hotel and airfare of experts or bidders who might otherwise have to visit the headquarters of the company to review the documents.