It isn’t easy to share sensitive data with third individuals, whether to facilitate due diligence, collaboration, or to avoid the risk of a breach of compliance. Virtual data rooms make it easier to streamline document sharing and automate processes so that companies can successfully complete a variety of business-related events.
VDRs are most often used in mergers and acquisitions. However, any company can benefit from a simple system that consolidates files instead of sending them back and forth through email. Virtual data rooms can help streamline the process of raising money from investors, or getting ready for an IPO. They can also help stakeholders to find the documents they require in an well-organized way.
A reliable VDR should also allow documents with granular permissions, which limit access to specific folders or documents. Many providers provide comprehensive reports and logging features that monitor user activity, for example, who has viewed which documents and the time they were viewed. A robust search function and the logical structure of folders makes it easy for users to navigate through the data.
Another important aspect is the ability to create customized document views for users according to their roles and duties. By granting specific viewing rights, you can ensure that only the relevant documentation is seen, which helps avoid the loss of productivity due to miscommunication. Many providers also provide the drag-and-drop interface that makes it simple to upload files.