A virtual deal room is a secure centralised platform that enables participants to collaborate on important business transactions. It allows users to upload documents and data and review them without having to meet in person. This reduces travel costs and delays, as well as the risk that confidential information gets leaked to unauthorized third-party parties. This technology aids in due diligence, M&A, fundraising, compliance as well as other business activities that require a substantial amount of sensitive documents.
During M&A, VDRs organize yet limit information such as contracts, financial records and intellectual property in order to facilitate due diligence by buyers. Private equity firms employ VDRs to organize and share sensitive information such as financial models, legal agreements and company valuations with limited partners. Life science and technology companies use them to share CAD files, production plans and other private information in a controlled environment. In the real estate industry they simplify the exchange of contract redlining documents, environmental reports and other documents among buyers, sellers, lenders and legal representatives.
When choosing a VDR be sure that customer support is accessible via email, telephone and live chat. They should be able and quick to answer questions quickly and give step-by-step instructions for users who are new. Choose a solution that offers multiple pricing options to suit various requirements for projects and engagement lengths. Select a solution that allows for flexible scale and storage that can accommodate evolving data requirements. Many vendors offer annual and monthly subscriptions. Others charge per page or include add-on services at an additional cost.