A virtual data room permits users to view documents from anywhere with an internet connection. They eliminate the requirement for dealmakers to travel and look over piles of documents in a physical setting. Instead they can access the documents remotely, which reduces the cost of due diligence and speeds up the process.

Due diligence in M&A transactions is one of the most frequent uses of VDRs. VDRs are perfect to share documents between the buy-side and sell-side of these transactions.

Investment bankers are also a typical group of VDR users. They assist their clients in IPOs capital raises, M&A transactions that typically require a significant amount of document sharing. They must also be aware of the need to protect confidential information, while allowing clients to access documents.

Life science companies are another major user group of virtual data rooms. They usually work with lawyers, accountants and consultants to develop and store sensitive documents. These parties must be in a position to access the data without risking privacy or creating a compliance issue.

Modern VDRs come with granular permissions, allowing the admin to determine who has access to the folders and documents in the data room. They can also https://boardmeetingdirect.com/business-triumph-virtual-data-rooms-redefining-boardroom-dynamics/ restrict access according to the number of times that a document has been looked at. They can also restrict access according to the date or IP address to stop hackers from gaining illegal access. Other security features include customizable watersmarks, encryption both at rest and in transit and remote shredding.