What Are Virtual Data Rooms?

A virtual data room (VDR) is a secure location to store and share files with external collaborators. It is often used to exchange documents for projects that require privacy, security and collaboration. Examples of projects that benefit from VDRs are VDR include mergers and acquisitions due diligence real estate transactions and court cases.

As part of due diligence, buyers in mergers and acquisitions have to have access to confidential documents. A VDR makes it possible for buyers to look over documents from anywhere in world without having to travel to the seller’s office.

The cost of the VDR varies. Some providers have opaque pricing models, where you must speak to an agent for sales to learn how much the cost of a project is. Other providers use transparent pricing models and charge an annual or monthly fee for each user. This includes internal users like your employees as well as external collaborators like lawyers, investment bankers, and auditors.

When choosing a VDR pick one that has a high uptime and customer assistance that is available 24/7. Also, ensure that the servers are hosted in a top data center with multiple levels of redundancy. This will ensure that your data will be safe and available. A VDR that comes with a robust set of collaboration tools will make your project run more smoothly. These include Q&A sections, annotations on documents and virtual data rooms the capability to assign tasks. This will improve productivity and decrease processing delays.