A major business decision requires all the facts. To gather those facts, it may require sifting through tens of thousands of confidential documents. If someone else has access to these documents, your organization could suffer an awful lot.
There are solutions to protect against these threats. Virtual datarooms (VDR) is an online service designed to protect sensitive documents. It features features such as multi-factor authentication and granular permissions. Additionally, it has a Q&A feature. It also facilitates efficient collaboration, reporting and electronic signature.
VDRs are especially useful in due diligence for M&A and capital raising projects. They enable teams to share confidential information in a secure environment, and keep the announcement of potential deals a secret. They do this with speed and efficiency. They can reduce the timeframe for due diligence by up to 50% and improve the project’s communication by utilizing Q&A flow.
Another purpose for the VDR is to help support strategic alliances. This involves the exchange of sensitive information regarding strategic alliances or mergers and acquisitions and other major business events. Secure online data rooms enable these exchanges to take place quickly and safely.
Many of these projects are subject to strict regulations that require meticulous management of documentation used by the company. A secure VDR will help companies comply with these requirements and avoid hefty fines and legal action. It also gives stakeholders the assurance that the company is taking measures to safeguard confidential information.
