A virtual data room is a cloud service specifically designed for the safe storage and sharing of confidential business data. VDRs are frequently used in M&A due diligence, but they may also be helpful in IPOs or real estate asset lifecycle management and other projects that require the sharing of sensitive information with third-party companies.
The most suitable virtual data room service depends on your specific industry and requirements. As you narrow down your choices, make sure that the vendor you select fully integrates with your company’s existing software stack. Additionally, a top-tier VDR partner should offer round the clock customer support that is multilingual. Be sure to look for security features such as malware and virus scanning, as well as multifactor authentication.
For example, Cabrera says his firm’s clients in the insurance industry often use VDRs for sharing information with regulators, adjusters and internal auditors. This helps save time and money by allowing a centralised system to check the practices of the company, its accounts, and compliance. This is especially important given that many employees are spread across remote locations and time zones.
Whatever the industry, many companies require sharing confidential information with outside parties at times. A VDR allows this to be done in a secure and monitored way. The data can be accessed by anyone with an internet connection and the activity can be tracked through detailed activity reporting.