A virtual dataroom (VDR) provides a secure way to share sensitive documents. It provides granular security with access permissions that can be customized. A VDR is more advanced than the rudimentary storage options, which typically allow only viewing and downloading. It also permits easy collaboration among multiple parties, and can customize access privileges.
In M&A deals due diligence can require a lot of information to be reviewed by a variety of parties. This can lead to long drawn-out, lengthy deals or end the deal when the documentation isn’t comprehensive and properly prepared. A VDR can provide a central location for all relevant information to be shared and viewed by various parties, thereby avoiding delays due to miscommunication or a lack of documentation.
VDRs can be used for a number of other business-related reasons as well for preparing portfolio companies for an IPO or fundraising which requires the business to share confidential financial documentation with third-party investors. They are extremely beneficial for investors as they organize documents into logical subfolders for easier navigation, and grant access rights with just a click.
For the life science industry, the virtual data room is the ideal solution to share confidential intellectual property with investors and potential partners. A VDR’s detailed tracking of document activity permits users to determine who has seen what documents and for how long. This data is helpful for making sure that a project has been thoroughly researched, which can generate interest from investors who are interested in keeping out the possibility of divulging sensitive information to the wrong individuals.