The Different Ways Virtual Data Rooms Are Being Used
Easy-to-use, affordable, and equipped with features that drastically simplify the secure exchange of documents, virtual data rooms are establishing themselves as the favored document sharing service for companies in most sectors. VDRs provide companies and organizations across numerous industries with the confidence that their business-critical files will not be seen by third parties unless they’ve been granted permission to do so.
Virtual Data Rooms for M&A Due Diligence
Historically, merger and acquisition transactions are one of the main scenarios where virtual data room usage is most prevalent. M&A transactions often involve the sharing of highly-sensitive business information that, if leaked, could jeopardize the deal altogether.
Virtual Data Rooms (VDRs) provide investment bankers, business brokers, and M&A advisors with a secure online environment where they can easily collect and share business-critical files on a FINRA compliant platform. These parties rely on virtual data rooms to streamline document collection and management, speed up due diligence, and maintain deal flow. Equipped with security features such as automatic encryption, granular permissions controls at the file level, and dynamic watermarking, virtual data rooms facilitate the sharing of sensitive information with multiple parties without having to worry about the safety of the information being circulated.
Virtual Data Rooms for M&A Marketing
Business brokers are effectively using virtual data rooms (VDRs) not just for due diligence purposes, but also in their marketing efforts to automate the process of managing leads.
A VDR serves as an excellent place for brokers to showcase a company’s executive summary and overview information when courting multiple interested parties. These prospects’ access to documents is recorded in the audit trails, providing excellent marketing intelligence as to which parties are most interested and active in the data room.
Virtual Data Rooms for Corporate Business Document Management
VDRs help small business owners and corporate project teams gather, organize, and share confidential business critical information beyond the firewall with ease.
Virtual Data Rooms for Fund Raising
VDRs have also been used extensively for Private Placement Memorandum (PPM) distribution or other Fundraising efforts. Virtual data rooms serve as an attractive alternative to email for collecting and sharing this information in a secure and organized manner.
Virtual Data Rooms for Loan Processing
Local and Regional banks and mortgage brokers are using VDRS to manage document collection as it relates to loan application and processing. Vault Rooms’ RLM Features have especially been attractive to loan managers to organize document collection.
Virtual Data Rooms for Audit & Tax Preparation
VDRs assist CPAs and attorneys with document collection (PBC List Management), organization, and management of client documents related to tax preparation and audit. Vault Rooms RLM Features have especially been attractive to CPA firms in managing their PBC lists.
Virtual Data Rooms for Exit and Estate Planning
VDRs assist attorneys with document collection, organization, and management of client documents related to exit and estate planning, and real estate transactions.
Virtual Data Rooms for Litigation
Legal firms use virtual data rooms to share privileged information with clients, legal teams, and 3rd parties related to criminal and civil litigation.
Virtual Data Rooms for Fund Management
Funds and Private Equity firms depend on virtual data rooms to communicate and collaborate with limited partners, portfolio companies, and auditors.
Virtual Data Rooms for Biotech & Pharmaceutical Document Management
Biotech and pharmaceutical companies use HIPAA compliant and CFR 21 Part 11 validated VDRs to securely share intellectual property and clinical trial data with 3rd parties.
Virtual Data Rooms for Energy and Mining Data
Energy and Mining companies depend on virtual data rooms for environmental audits and bid management in addition to their due diligence and fundraising requirements.
A Solution That Fits The Needs of Multiple Industries
To conclude, although virtual data rooms have been historically associated with merger and acquisition transactions, companies across industries are adopting the usage of virtual data rooms to store and share important files securely. The options using a virtual data room are growing, and one of these scenarios may benefit your company.
Vault Rooms – A Leading Virtual Data Room Provider
For more than 13 years, Vault Rooms has been an industry-leading cloud-based virtual data room provider. Vault Rooms has proudly facilitated tens of thousands of global M&A transactions across a wide range of industries for a variety of clients – including business brokers, investment bankers, accountants, attorneys, private equity firms, and banks. Vault Rooms’ virtual data rooms enable worldwide clients 24/7/365, to safely collect, organize, share and track business-critical documents on the Vault Rooms platform.
About the Author
Karen Perkins is the CEO and Co-Founder of Vault Rooms, Inc. She is a troubleshooter, problem solver, and efficiency expert. Her career experiences have provided a broad foundation of skills that make her uniquely qualified to assist companies with their growth, transition, and operational improvement. She advocates for the use of simple and secure technology tools designed to make work and life easier with the Super S.M.A.R.T. Women platform. Likewise, her company, Vault Rooms, is a technology platform for the simple and secure sharing of business-critical files.