A virtual data room is a device which facilitates document sharing in any scenario that requires secure and professional storage and distribution of documents. Most often, VDRs are used in mergers and acquisitions however they are also beneficial for strategic partnerships, raising funds, IPOs and legal procedures.

In the past, it was typical for people involved in due diligence or legal procedures to travel to an actual location and spend hours scanning through piles of documents. A virtual www.dataroomdc.com/role-of-a-virtual-data-room-in-managing-mas/ data room takes away this inconvenience and provides an easier user experience for all parties. Additionally, finding a particular document is just only a couple of clicks using the help of advanced search engines.

A virtual data room could also play an important role in facilitating complex collaboration and communication in the context of negotiations. A leading pharmaceutical firm, for example, used a virtual dataroom to complete the complex merger of an industry giant and an established pharmaceutical firm. Both companies were able to conclude the deal with a minimum of rework due to the enhanced security of data as well as its speedy communication.

Virtual data rooms can offer more in-depth analysis, which is focused on transactions, than cloud storage apps. For instance unlike cloud storage applications, which provide basic access statistics such as usage statistics and current access, VDRs allow admins to grant more granular permissions to particular documents or folders as well as to track the actions of users on a granular level including who is viewing which document and how long. VDRs also allow administrators to restrict the amount of times a user is able to login, the length of time during which the user is allowed to view the platform, and even restrict access to the platform by IP address.