A virtual deal room is an online repository for private documentation that needs to be shared with multiple parties in a business transaction. It is typically used for M&A and due diligence, capital raising and real estate transactions. It allows users 24/7 access to company information, with high security. It can be configured to work with any kind of file or document. Administrators can assign user permissions so they can restrict who can access what.
Contrary to traditional email attachments, or cloud storage, VDRs can be accessed and viewed via any device or browser that is crucial during an M&A process in which the team could be spread virtual deal room across several locations. It’s also more secure with features like encryption, granular permissions and audit trails that safeguard against data breaches. VDRs can also help reduce paper usage and associated carbon footprint, which is a plus for any environment-conscious organization.
Virtual deal rooms can be a great tool for companies that need to create comprehensive sales proposals faster than their competitors. This includes manufacturing companies that need to share product specifications or service contracts with prospective buyers and financial services companies that have to manage pricing calculations and terms of service.
Legal teams use VDRs to collaborate on cases and to provide confidential documents to clients and other lawyers. VDRs can be extremely helpful during M&A when there are multiple parties who require access to information to make decisions and ensure the compliance of regulatory authorities.