A virtual dataroom (VDR) provides an online, secure environment for collaboration when looking over confidential documents. When it comes to M&A transactions, for instance companies can easily share files with potential buyers without worrying about them being stolen or leaked.
VDR features include granular permissions to manage access to each document on an individual file basis, critical information about changes made to files with two-factor authentication, complicated passwords and custom NDAs that can be customized. They are also designed to prevent data leaks and other security breaches. In addition to that, a VDR provides the ability to integrate with other productivity tools, such as software for managing projects or communication platforms as well as document editing software.
When a company decides to expand its operations or establish strategic partnerships, it will frequently transfer large amounts of data. Virtual data rooms provide an easy method of sharing these documents with partners across the globe. They can be used by both parties to collaborate and accelerate the decision-making process.
Imagine a room filled with filing cabinets to understand the differences between a virtual room from other storage options. The person who manages the room determines the cabinets that each person can see and what’s inside the cabinets. Virtual data rooms are similar to physical data rooms however, they can be managed more efficiently and precisely using any device. For instance, an administrator can activate fence view, a feature that blacks out sensitive information in the document to make it confidential.
