When businesses decide to use the virtual data room (VDR) to share private documents online with third parties, they’re usually focused on the solution’s price range, security capabilities and usability, which can all be tested through a free trial offered by most providers. While these factors are important, many fail to consider that a VDR’s true value is in its unique capabilities that allow sharing of confidential documents for mission-critical processes.
VDRs can be extremely useful for professionals who have to share sensitive documents, such as legal documents for clients as well as with investors, service providers or other third-party organisations. A VDR properly configured can guarantee that documents like HR and financial documents, client legal documents or proprietary intellectual property, business plans, or proprietary intellectual property are only accessible to those who have the proper permissions.
Mergers and Acquisitions (M&As) procedures require large volumes of documents to be exchanged, and must be reviewed securely by a variety of parties. VDR’s permission settings are granular and easy-to-navigate folder structures make it an ideal repository for due diligence processes.
VDRs are utilized by pharmaceutical and biotech companies to share confidential molecules and formulations with other labs and regulators as part of their research and development procedures or in preparation for fundraising activities and licensing. A VDR that is specifically designed for this purpose is the most suitable solution because such information is extremely confidential and requires strict data security standards.
It’s the same for commercial real estate projects where investors and buyers have to examine large-format blueprints, financial statements and more. A VDR allows them to accomplish this without the limitations of email or file-sharing systems that are generic which typically require lengthy downloads or uploads and can’t handle multiple users at once.
