A virtual dataroom is an online secure platform that allows you to upload and share private information with third parties. These systems allow companies to simplify complicated business processes such as M&A due diligence, IPOs or fundraising by providing all stakeholders with easy and secure access to sensitive data. Additionally the entire process is documented in a full audit trail to ensure security and transparency.
Due diligence in M&A transactions is one of the most frequently used applications of online data rooms. Both the sell-side and the buy-side of a financial transaction are required to review the relevant documentation. To avoid leaks or embarrassing revelations, it’s essential that all documents be examined in a controlled environment. VDRs are the ideal solution by allowing both parties to review all relevant documents all in one location, with custom permission settings.
Many service providers provide templates that make the process of due diligence easier. These include folders to create an archiving system that is logical and an upload interface with drag-and-drop. This lets users quickly and efficiently design and populate an online data room, saving time and money.
The best vdrs for due diligence should have customizable watermarks, branding NDAs, document labels, which allow users to secure sensitive information from unauthorised disclosure. They can also restrict access to certain folders or files and cancel permissions for digital rights management remotely. We have been using iDeals since 2005, and it has proved to be an invaluable tool for us, specifically in the context of several M&A transactions worth millions of euros or dollars. The support team for customers is always available to help with any questions we may have.