After a number of high-profile data breaches, companies are becoming concerned about sharing personal documents securely with third party. A virtual information room (VDR) facilitates many types of document sharing and due diligence processes by giving users access to documents from any device that is connected to the internet. The rooms can be used to serve a variety of functions and are typically used in M&A deals or venture capital financing and other transactions that require extensive documentation sharing and analysis.
To set up an VDR it is important to find an accredited service provider who has a transparent pricing structure and customer support. Then, transfer your existing data to the platform. Make sure that documents are organized and indexed in a way that makes it easy to search. Also, ensure that the permissions for users are set up according to roles. Not to mention, make sure that your team is trained to make use of the VDR. This includes making sure they understand the security procedures and best practices for managing documents within the platform.
VDRs are especially useful to manage intellectual property including trademarks, patents, and research data. They are designed to stop IP theft and safeguard this information from misuse by implementing features such as watermarking, selective dissemination, expiry of documents, and download restriction.
In the course of an M&A is common to exchange a large amount of sensitive information between the purchasing company and the selling. This could include financial records, legal documents and employee information. A VDR organizes this data which allows both parties to perform due diligence quickly.