The most commonly used use of virtual datarooms is to facilitate market transactions such as mergers and acquisitions. During this phase buyers need access to huge volumes of confidential documents stored in a variety of locations. A company must rent an office space to store documents and hire security to monitor the area 24 hours a day. The introduction of data rooms can eliminate the need for this and helps reduce operational costs.

A VDR can help businesses keep records of who has access to documents and how. The administrator can specify which documents an individual may browse, download and print. It can also add dynamic watersmarks to documents, which will indicate who was the person who viewed them. This helps ensure that confidential information is not compromised.

The platform allows the sharing of sensitive documents with other parties such as lawyers or accountants. This is particularly important when a company has to reveal sensitive information as part of an audit or another regulatory process. A virtual dataroom permits external observers to access the files of a company without risking leakage or compliance violation.

Whether you’re preparing for an M&A deal or going public, or working on contracts with clients, the right VDR can assist you in getting the job done and stay in compliance. Find a VDR that provides flexible functionality and features, such as AI features that help simplify and speed up the review of contracts. DFIN’s Venue for instance, uses AI to deliver significant efficiency and information in due diligence by reducing repetitive tasks, automating them, and allowing full text searches and auto-redaction.

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