Virtual Data Room Software allows you to save and share confidential documents and files in a safe online repository. These include financial records such as intellectual property documents, employee data and many more. VDRs are used to perform due diligence during M&A processes, as well as many other collaborations between business stakeholders, such as joint venture investments and executive communications between board member.
The most important feature of the VDR is that it can be accessed remotely and securely by authorized users using a web browser or dedicated agent applications. The data is secured by file-level permissions and advanced encryption methods that stop sensitive information from being accessed in an unauthorised manner like hacking. The VDR should be highly customizable and fully integrated into the workflows of the company’s IT systems.
VDRs are beneficial for all kinds of business transactions. However, certain industries are more dependent on them than others. Life science and technology companies, which have to protect proprietary data, are some of the most heavy users. However, almost every business could benefit from an VDR for certain collaborations.
To ensure that the ideal VDR is chosen to meet a specific business requirement it is important to select one with an easy interface that’s both familiar and easy to use for accountants in the beginning and what is virtual data room software CFOs. It’s also recommended to look for a provider that offers a free trial and allows for customization to ensure seamless integration with the company’s existing technology stack.