Virtual data rooms provide an affordable and secure alternative to traditional document sharing and storage. They can be utilized for a variety of business transactions, such as mergers and acquisitions, fundraising, strategic partnerships as well as intellectual property management audits, corporate development, board communications and many more.
Mergers and Acquisitions
The most common use case for virtual data rooms is mergers and acquisitions where a company may need to furnish or review a huge amount of documents in due diligence. These quantities can make the process a expensive and time-consuming process and, therefore, VDRs allow buyers to access the information they require without needing to travel to seller’s office.
IPOs
Companies who decide to go public require to maintain transparency with shareholders and the general public. They also require secure solutions for document sharing. They can use virtual data centers to share information with investors, lenders and shareholders, as well as other parties, while protecting their confidential information from competition.
Litigation
Lawyers and their clients also depend on secure virtual data rooms to keep sensitive data safe from competition or legal action. They can make the files view-only and restrict access to certain users, which prevents them from sharing information that could be detrimental to the case.
Estate and Exit Planning
Often, lawyers must share sensitive information with third parties during estate and exit planning as well as real estate transactions. A secure virtual data room can assist them in managing the process and keep all the documents in one location, making it easier for teams to share information with each other.