www.dataroomdc.com/what-is-an-online-data-room-and-why-would-you-need-one/ The function of a virtual data room is to facilitate sharing of documents in all sorts of scenarios. In reality the VDR can be utilized for virtually any project that requires secure and professional document storage, management and sharing. These include M&A, due diligence, investor reporting as well as board communications and many others. […]
www.dataroomdc.com/what-is-an-online-data-room-and-why-would-you-need-one/
The function of a virtual data room is to facilitate sharing of documents in all sorts of scenarios. In reality the VDR can be utilized for virtually any project that requires secure and professional document storage, management and sharing. These include M&A, due diligence, investor reporting as well as board communications and many others.
For instance, the life science industry handles all kinds of intellectual property that has to be protected and stored in accordance to compliancy standards. A Firmex dataroom can help these companies to streamline complex processes for instance, M&A due diligence, while ensuring full control of confidential documents and other information.
A VDR’s main goal is to speed up M&A transactions by eliminating the problems and expenses of traditional due diligence like photocopying, physical meetings, etc. This way, businesses can broaden their horizons in terms of potential buyers, and close the deal faster.
A VDR can also be useful for other types of investment banking like capital raising and initial public offerings (IPOs). It is common for external parties in these situations to demand access to confidential documents. Legal counsel, accountants, or auditors may require access to documents that are private. A company has to find ways to get this done without risking the deal.
A virtual data room is a safe and convenient way to accomplish this, while it allows the company to track all activity in the data room using audit logs. This includes who has accessed the data room, and for how long as well as any downloads or printing. You can also apply dynamic watermarks from a virtual dataroom to files so that those who view them will know that they’re not authorized. This is crucial for business users because it helps in preventing theft of documents.
