Benefits of virtual data room
Keywords: virtual dataroom, dataroom, secure dataroom
Virtual data room (VDR) is an online storage of information which is used for storage and sharing of the company’s documents.
Secure virtual Datarooms are used for many purposes, and it makes information storage and distribution easy and fast. It is very helpful with the due diligence process, because during this process many documents are sent back and forth, and it is necessary for them to be collected in one place and easy to access at all times. Due diligence process used to be performed by using a physical dataroom, where the paper documents were stored, but with the technological development, it became a web-based activity, which brings many benefits compared to the old-fashioned way of storing and sharing documents. It is cheaper, faster, more efficient and more secure; therefore it is today used by most businesses.
Since due diligence process involves many documents, it can easily happen that they are lost in the process of exchange. With a virtual dataroom, it is facilitated and the risk of losing documents is brought to a minimum. When the documents are sent to the dataroom, they are immediately saved in it, and there is almost no chance that the documents are lost.
Additionally, with other datarooms, it is possible to see who has accessed and read which documents and when, which facilitates the communication because there is no need for an email to be sent every time someone reads a certain document – you can see whether they have read it within the data room itself.
Another advantage of data room is that it is a concept fairly easy to use. Most of the data rooms are set in several minutes and they are ready to be used by every individual supposed to have the access to the documents. There is no need for additional training, but everyone who knows how to use a computer or a smartphone will be able to access the dataroom.
It is important to use some of the secure datarooms, such as Ansarada, Box, Digify etc., created by trusted and professional companies. This way, all the information and documents you store will be stored securely, without the possibility of unauthorized entities to access them. Secure datarooms allow you to create folders for every project and upload the documents to it, with the possibility to choose who will be able to see, download or change all the documents. Also, these datarooms provide you with the control of who is accessing what, and you will get notified whenever someone views, downloads or uploads a document. This way, there is a full control of all the project folders and the documents within them, with the possibility to include or exclude people from the access to the documents.
Advantages of Using A Virtual Data Room
Last, but not least, saving and sharing the documents within online datarooms is eco-friendly, because there is no paper involved whatsoever. Everything is system-based and shared online, with no printed material to be sent back and forth. If it is necessary to sign documents, it can be done by using an electronic signature and then the signed documents can be returned to the dataroom, which is not only environmental-friendly, but also much faster.
Reading-Tipp: Check out the handy Due Diligence Checklist at http://www.due-diligence-checklist.net to avoid major mistakes during a merger or acquisition.