A Virtual Data Room Business is an secure repository for sharing private documents that are important, with the ability to track and monitor who is accessing the information. VDRs are used in a variety of business and industry functions. They are particularly useful in the process of negotiating a transaction, which involves third parties having access to huge quantities of sensitive information. These third parties could be authorized employees or solicitors who act on behalf of the seller or buyer. It is usually difficult to share this information on hard copy or via email and also an online VDR facilitates the coordination www.vdrdesign.com/what-is-data-migration/ of due diligence.

Often, VDRs are utilized by businesses seeking capital, aiming for an IPO or undergoing an acquisition or merger (M&A). During the fundraising phase, a company may need to share details and host roadshows with up to fifty investors each week. A Virtual Data Room helps to manage this influx of 3rd party access and information, whilst retaining control over who has access to documents and data.

Investors often request an VDR before offering terms sheets, to ensure they have easy access to information about the company, alongside any publicly available material they might find online. Once a deal is concluded, it is beneficial to make use of a VDR to provide investors on a quarterly or monthly basis with the key highlights, such as financial performance as well as other qualitative information about the business. Some companies prefer to provide their investors access to a KPI dashboard that they can access in real-time.