A virtual deal room (or virtual repository) is an online repository that contains private documents that need to be shared by multiple parties involved in a transaction. It’s usually used for M&A and due diligence or capital raising, as well as real estate transactions. It allows users to have access 24/7 to business information with high security. It can be set up for any kind of document or file. Administrators can define user permissions to decide who is able to see what.
Unlike traditional email attachments or cloud storage, VDRs can be accessed and viewed from any device or browser that is crucial during an M&A process, where the team might be spread across different locations. It’s also more secure and secure, with features such as encryption, granular access privileges 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.
Businesses that require complete sales proposals more quickly than the competition could benefit from a virtual deal room. Manufacturing companies that require to give product specifications to potential customers or service contracts, as well as financial services firms who have to manage pricing maths and terms of service.
Legal teams typically use VDRs to collaborate on cases and share confidential documents with lawyers, clients, and regulators. They are especially useful during M&A when there are a lot of stakeholders that require access to information to make decisions and ensure compliance.