How a Virtual Data Room Works

It is crucial to understand how a virtual room functions regardless of whether you’re preparing to launch an IPO or are contemplating an M&A or selling. VDRs are an essential component in the deal-making process and provide security, usability and accessibility that traditional collaboration platforms can’t beat.

The VDR allows businesses to securely share large amounts of documents in a secure environment with potential investors, buyers and partners. Administrators can control access and capabilities for each user by giving restricted permissions. This permits you to limit the ability to print, download and rename files. You can also track user activity down to the page level, and keep an audit trail.

You can import files from Google Drive, One Drive and Dropbox into the VDR. This reduces time and ensures that all pertinent information is accessible to the due diligence process. This helps you avoid redundancies and omissions throughout the process. Digify’s VDR also offers a secure and efficient method of conducting Q&A sessions with key stakeholders during the due diligence process. This allows any questions to be addressed quickly and efficiently, speeding up the deal.

When inviting other users to look over the VDR it is essential to think about their needs and how they would like to work with the documents. Some users may require full access to all documents, whereas others will require a more limited access. Legal counsel, for example might require free access to all corporate records. Meanwhile, investors may only need access to financial statements, business plans, and other documents relevant to the investment.