Types of Data Rooms
There are many types of virtual data rooms (VDRs) available. They can be used for due diligence, collaboration or storage projects. Finding the best solution for your requirements is essential – you want to ensure that your files are accessible, able to be shared or downloaded in a secure manner, and the information is kept private throughout the entire time.
Due Diligence
One of the most popular uses for virtual data rooms is due diligence during M&A deals. It involves sharing sensitive data between two or more parties, including financial documents and legal records. A VDR enables buyers and sellers to conduct due diligence in a safe efficient, controlled and organized way. It is important to monitor who has accessed the information and when to prevent security breaches or data leaks. Watermarking and screenshot protection can prevent this from happening in the due diligence phase.
Preparation
A pre-planned VDR can be a great tool to help your team organize prior to the actual due diligence process starts. It allows you to upload information and documents early, so that everything is prepared to go when third parties are invited to join. This can help create important process efficiencies. The best virtual data storage spaces for preparation allow you to set up document permissions according to roles, folders and even documents and files. This ensures that only the information that you require can be viewed.