Following a string of high-profile data breaches, companies are increasingly concerned about sharing private documents securely with third-party. A virtual information room (VDR) can facilitate a variety of document sharing and due diligence processes by giving users access to documents from any device connected the internet. These rooms can be utilized for many different purposes and are commonly used in M&A deals or venture capital financing and other transactions that require extensive documentation sharing and analysis.
To set up an VDR you should first find an experienced service provider that provides a transparent pricing system and customer service. Then, you can transfer existing data to the platform. Ensure that the documents are indexed and organized in a way that makes it easy to search. Also, make sure that user permissions are in place based on the roles and responsibilities. Finally, provide training to your team on how to use the VDR. This includes ensuring that your employees are aware of security protocols and best practices for document-management within the platform.
VDRs can be used to manage intellectual property such as trademarks or patents as well as research data. They are designed to stop IP theft and protect this information from misuse by implementing features like watermarking, selective dissemination, expiry of documents, and download restriction.
During an M&A process, it is common for a large amount of confidential information to be exchanged between the buying and selling company. This includes financial documents and legal records, and employee data. A VDR organizes the data and allows both parties to perform due diligence quickly.