A Virtual Data Room Business (VDR) is a secure repository to share important documents with the ability to track and record information access. VDRs are used across a range of industries and business functions. They are especially beneficial during the transaction process, when third parties often require access to large quantities of confidential data. These third parties could be authorised employees or solicitors working on behalf of either the seller or buyer. Usually, it is difficult to share this information by either email or hard copy and also an online VDR allows for simple coordination of due diligence.

Often, VDRs are utilized by companies seeking capital, aiming for an IPO or going through a merger or acquisition (M&A). During the phase of fundraising, a company may need to share information with more than fifty investors every week. A Virtual Data Room helps to manage this influx of 3rd access and information while ensuring control over who has access to data and documents.

Investors usually ask for the use of a VDR prior to releasing an offer on www.vdrdesign.com/the-ultimate-guide-to-virtual-data-room-services-for-ma-transactions a termsheet, so that they can be sure that they have easy online access to all information they require about the company. It can be useful to use a VDR once a deal has been completed to give investors key information such as financial performance and qualitative information about the company. Certain companies provide their investors the KPIs on a dashboard that they can access in real-time.