Virtual data rooms (VDRs) are typically used by accountants, lawyers, and auditors of companies who require access to sensitive data without putting themselves at risk of an attack from hackers or a violation of compliance. A VDR specifically designed for external parties is designed to allow them to review confidential documents online without risk.

VDRs are commonly used for M&A due-diligence. Companies that are acquiring or merging require a secure platform to store the relevant documents and investors who are interested in investing need an easy way to review it. A dedicated VDR enables the process to run smoothly and ensures that valuable information is only shared only when required. If a deal does not close in time, access to the VDR can be immediately revoked.

Many VDR vendors offer a range of user management tools to maintain control over the information that users view. It is important to ensure that the platform you choose has robust permission settings so that you can restrict access to specific kinds of files or data that include granular details such as file names and sizes. It is recommended to choose a platform with the ability to audit granularly and log activity to provide full transparency into who is viewing what files.

If you are planning to make use of your VDR to support critical processes that need to not operate between 9-5, then you should choose an organization that offers 24/7 support. It’s worthwhile to have experts on hand to answer questions and address issues.

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