After a number of high-profile data breaches, companies are increasingly concerned about sharing private documents securely with third parties. A virtual information room (VDR) is a device that allows users to access documents on any device connected to internet, facilitates many types document sharing and due-diligence practices. These rooms can be used for many different purposes and are commonly used in M&A deals, venture capital financing, and other transactions that require extensive documentation sharing and analysis.
To create a VDR, start by finding a reputable provider that offers transparent pricing structures and support for customers. Then, move existing data into the platform. Make sure that documents are indexed and organized correctly to make it easy to find them. Also, ensure that user permissions are in place based on roles and responsibility. Not to mention, make sure that your team is trained to use the VDR. This includes making sure that your team understands the security protocols and best practices for document management within the platform.
VDRs can be used to manage intellectual property such as trademarks, patents, and research data. They are designed to guard the information from misuse and to prevent IP theft across different business transactions by implementing features like watermarking as well as selective distribution, expiry of documents and download restrictions.
During an M&A process, it is common for a large amount of confidential information to be transferred between the selling and buying company. This information can include financial documents and legal records, as well as employee information. A VDR helps to organize the data and allows both parties to conduct due diligence quickly and efficiently.