A vdr that facilitates deal making is an encrypted, cloud-based repository that helps businesses share and protect vital business data with clients executives, investors and other company leaders through the Internet in a controlled environment. Other document-sharing platforms are called collaboration tools or file sharing services, however, they do not have the essential features which make virtual rooms the ideal choice to facilitate transactions and protect sensitive information.
While mergers and acquisitions (M&A) procedures are the most common use case for a VDR it can be applied to any business transaction that requires the safe exchange of sensitive files. This includes financing activities, such as raising capital, IPOs, or strategic partnerships that require intellectual property and page proprietary information between various organizations.
Regardless of the business scenario when it comes to selecting a vdr for deals, businesses should look for transparent pricing structures, a easy deployment and simple use and a central archive that can support post-closing needs like due diligence audits. A reputable provider also offers numerous document and user engagement metrics like activity reports as well as file view statistics and much more.
Another crucial aspect is the ability to customize the VDR to meet specific needs. This could involve adding a logo of the company or creating a custom login page, as well as creating granular access control to ensure that each file can be restricted from printing or copying past specific limits. VDRs should also offer various file-level security features, such as digital rights management (DRM) properties and watermarking, which can secure sensitive data from unintentional dissemination.