What is a Virtual Deal Room?

If you’re planning to sell your company or simply want a more efficient method to share documents with clients, investors, and company leaders, the virtual deal room is a key tool that will help you streamline business transactions. Also referred to as VDR (virtual dataroom) or online file storage or private virtual room, it’s an online platform that allows users to access files on the internet using any device or location that makes it possible for all parties involved in a transaction to access and review confidential documents from any location at any time.

Virtual data rooms are commonly used during due diligence of M&A transactions. The sell-side team will organize all the necessary documentation in a secure cloud-based system that can only be access by buyers at a time. This will guarantee the privacy of the information and allow buyers to make an informed decision.

Other major applications of VDRs include making preparations for an IPO as well as sharing and collaborating documents during fundraising rounds. A VDR will allow you to speed up your vetting and decision-making process that will allow you to close faster than traditional methods. You’ll also save money on printing, shipping and the storage of documents. With advanced security features, VDRs help prevent VDR can help you avoid costly errors and security breaches by limiting unauthorized access to sensitive information.

VDR