A virtual data room, or VDR is a safe online repository that allows for the storage and distribution of business documents. It is used to share and analyze documents with potential buyers during M&A due-diligence. It is also an ideal site for document collaboration across different sites and time zones. VDRs have many advantages, and can save companies money and increase efficiency through streamlining the M&A processes.
One of the most significant data room pros is that it helps to make the M&A process logistically easier and more efficient for both parties, by eliminating the requirement to visit a physical location to examine the documents. For a large company this can be costly and time consuming.
Data room software also gives a central repository of all M&A data room documents which can be accessed with one click. This reduces the amount of back-andforth communications between interested parties and makes it easier for everyone to comprehend the documents being discussed.
The best data rooms provide modern, intuitive user interfaces that are easy to use and run on all devices. They also come with granular permission options which can be configured at the report or the folder level. This is particularly beneficial when employees are required to work remotely, for example, if they’re away on vacation or a business trip. It also increases accountability by allowing managers access to who has opened and edited files, and when.