To make a major business decision, you must have all the facts. The process of gathering these facts typically involves scouring through tens of thousands of confidential documents. If the wrong people have access to the data understanding functions of online storages this could be costly for your company.
Fortunately, there are safe online data rooms that guard against these risks. A virtual dataroom (VDR) is an online service designed to secure documents. It includes features such as granular permissions, multi factor authentication, watermarking and an Q&A tool. It also supports 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, while also keeping the announcement of potential deals a secret. They do this efficiently and quickly. They can help reduce due diligence timeframes by as much as 50% and increase the communication of projects through Q&A flow.
Another reason to use an VDR is to support strategic alliances. This involves exchanging sensitive data regarding strategic alliances, mergers and acquisitions, and other important business events. Secure online data rooms allow these exchanges to occur quickly and in a secure manner.
Many of these projects fall under strict regulations, which require scrupulous documentation management. A secure VDR helps companies comply with these requirements and avoid hefty fines and legal action. It also gives stakeholders confidence that the company is taking steps to protect their confidential information.