A virtual data room is beneficial in a variety of business scenarios. This article takes a look at some of the commonly encountered situations with this type of tool.
Mergers and Acquisitions
Often the process of finalizing the merger or acquisition demands companies to go through a vast number of documents. These documents are private and must be stored safely. Virtual data rooms allow businesses to easily access and examine these confidential documents without the need to rent a physical space or hire security personnel.
Life science companies
Through various processes, pharmaceutical, biotech and medical device companies frequently require sharing sensitive information with other parties. This includes sharing intellectual properties such as design specifications, product plans. Virtual data rooms can be used to facilitate these types of collaborations. They also can help to speed decision-making.
Insurance claims
In the event of active claims, parties must collaborate on confidential reports and files. These teams can easily share documents and collaborate on them using a virtual dataroom. It also safeguards sensitive information from unauthorised access. A VDR also has auditability capabilities that monitor the files that users have looked at and the time they have spent. This is helpful in to gauge interest or for determining potential issues. Additionally, some VDRs offer redaction functions that black out certain areas of files so personally-identifiable information stays private.