A virtual deal room (or virtual repository) is an online repository with private documents that need to be shared with multiple people involved in a transaction. It is usually used for M&A due diligence, capital raise and real estate transactions. It lets users access business information 24 hours a day with high security. It can be set to work with any type of file or document. Administrators can define the permissions of users so that they can determine who has access to what information.
Unlike traditional email attachments and cloud storage, VDRs can be accessed and viewed via any browser or device that is crucial during an M&A process where the team may be spread out across several locations. They are also much more secure by incorporating features like encryption, granular access rights and audit trails that safeguard against data breaches. VDRs can also help reduce paper usage and associated carbon footprint, which is a plus for any environment-conscious organization.
Virtual deal rooms are a great tool for companies who require the ability to write complete sales proposals quicker than their competitors. This includes manufacturing companies that need to communicate product specifications or service contracts with potential buyers, as well as financial services firms that need to manage pricing and terms of service.
Legal teams typically utilize VDRs to collaborate on cases and share confidential documents with clients, other lawyers and regulators. They are particularly useful during M&A where there are multiple stakeholders that require access to information to make next – Key Virtual Data Room Features for Investment Firms decisions and ensure compliance.