After a string of notable data breaches, businesses are becoming concerned about sharing confidential documents securely with third-party. A virtual information room (VDR) facilitates many types of document sharing and due diligence processes by allowing users to access documents from any device connected the internet. The rooms can be used for a variety of reasons and are often used during M&A deals or venture capital financing and other transactions that require extensive documentation sharing and analysis.
To set up an VDR you must first locate a reputable service provider who provides a clear pricing model and customer support. Then, you can transfer the existing data to the platform. Make sure that my blog documents are organized and indexed correctly to make it easy to find them. Also, make sure that permissions for users are set based on roles. Finally, provide training to your team on how to utilize the VDR. This includes making sure that your team understands the security protocols and best practices for document-management within the platform.
VDRs are particularly helpful to manage intellectual property, such as trademarks, patents, and research data. They are designed to stop IP theft and guard this data from misuse by implementing features such as watermarking, selective dissemination, document expiry and download limitation.
During an M&A process it is commonplace for a large amount of confidential information to be exchanged between the selling and buying company. This can include financial documents and legal records as well as information about employees. A VDR manages this information so that both parties can conduct due diligence swiftly.
