VDRs provide a secure and simple way to share sensitive files with other parties during due diligence processes, such as M&A capital raising, asset sales, and many other. They eliminate the hassle, expense and risk associated with distributing large documents via fax or email and permit access on demand for authorized users with no requirement to print or travel to review materials.
Investment bankers are one of the most common users of virtual data rooms, because they frequently assist clients in strategic partnerships that require substantial quantities of information exchange and storage. For example, IPOs and capital raising activities require huge amounts of documentation, requiring an extreme level of security and organization. VDRs are perfect for these types of processes, as they allow leadership teams to control access and easily share data with potential investors.
The best VDRs come with top security features, including multi-factor verification (MFA) for user identification and permissions settings. This can prevent unauthorised users from accessing the files and allows executives to establish granular controls on different parties involved in a deal, making sure that only the authorized parties are able to access the information they require to fulfill their tasks. It is also important to ensure that the provider’s servers are located in world-class data centers with a variety of redundancy in order to ensure reliability and uptime. It is essential to confirm that the support team of the provider is available 24/7/365 to help with any questions and provide assistance when you require it.