The process of evaluating a deal using VDR is a crucial part of closing deals for businesses in all sectors. A virtual data room (VDR) is an ideal method of protecting sensitive data for companies that need to review data with outside parties like accountants, lawyers or compliance auditors. The most frequently used use of VDRs is due diligence during mergers and acquisitions, where many parties are examining a significant amount of documents. A VDR allows all participants to review documents in a secure online environment, which prevents leaks that could endanger the business.
Venture and private equity firms often analyze multiple deals at once which means they have reams upon volumes of information that require organization. They depend on VDRs to enable them to quickly review documents without spending time scouring through emails or Excel spreadsheets. They are seeking an option that has a user interface that is simple to use on a variety of devices, and lets them access their VDR anytime. They also want to find the vendor that has various file formats and features which facilitate collaboration between stakeholders.
Life science companies, which are heavily dependent on their intellectual property and research, are another industry that heavily rely on VDRs. The secure platform lets them share confidential documents with investors and partners while keeping them private from rivals. Additionally startups can make use of a VDR to assess the interest of potential investors by observing what parts of the company’s documents are most viewed. SS&C Intralinks provides quarterly variations in the number of VDRs created or proposed to be created. This gives an indication of trends for M&A activity.