Virtual data rooms aren’t limited to a specific industry. Virtual data rooms can be used by companies to share sensitive documents. This could be a merger, an acquisition or IPO or any other kind of business transaction that involves the exchange of sensitive documents. In certain instances it is necessary to provide this information to satisfy regulatory requirements for instance, the need to allow auditors and regulators to look over the company’s documents.
Virtual data rooms are utilized by a number of companies to facilitate due diligence in M&A transactions. Due diligence can require many documents which needs to be reviewed by many interested parties. Being able to easily access and download documents in a VDR helps the process move faster and more effectively.
Other companies utilize VDRs in other companies. VDR to facilitate document sharing with legal teams, clients and third parties for reasons of regulatory or litigation. For example the law firm might require access to the records of a client and must do so in a safe environment to ensure that it is not in violation of privacy laws.
A VDR can also allow businesses to automate processes, workflows and approvals. This will reduce the amount of time and effort required to carry out tasks manually for instance, signing an NDA, managing invoices approvals, or uploading files to a dataroom. Additionally to this, a VDR that has advanced features for processing documents will be able to search for text in a variety of types of documents, including PDFs as well as Excel documents.