Virtual data rooms can be used in a variety situations to facilitate secure document sharing without the need for a large physical facility. VDRs are usually utilized during due diligence for mergers and acquisitions. However they can also be used to share documents with business partners, clients and other stakeholders.

A virtual data room is a great option for M&A transactions because it permits the sell-side and prospective buyers to review documents from one location without exposing sensitive information. Similarly, investment bankers www.dataroom365.com/who-can-use-a-virtual-data-room/ often use VDRs for sharing confidential documents with clients and other stakeholders involved in M&A and capital raising procedures. Technology firms use VDRs to share design and manufacturing information across teams spread across the globe. Consultants make use of them to spot patterns in large data that could be used to inform corporate strategy.

A VDR can also reduce M&A costs by eliminating the need for printing and travel, and by giving access to documents more easily than is possible using the use of a physical repository. Additionally, it is easy to customize the storage structure to suit every project and to provide restricted access on a per-document basis.

Users can access VDRs through their web browsers. This means they can read documents from anywhere with internet access. Administrators can access comprehensive reports of the activities of users, such as who viewed what documents when, and at what time, as well as where. This information may not be accessible with physical storage, where access logs can only reveal what’s being visited and by whom.