A Virtual Data Room Business is secure repository that allows sharing important private documents and the capability to monitor and track who has access to information. VDRs are commonly used across different fields and functions. They are particularly useful during the course of a deal, which often involves third parties having access to huge amounts of confidential information. These third parties may be authorised employees or solicitors acting on behalf of the seller or buyer. It is often difficult to read this article communicate information via email or in hard copies. A VDR online allows for easy coordination of due diligence.
VDRs are typically employed by companies looking to raise capital, undergoing an IPO or merger and acquisition (M&A). During the fundraising stage a company may need to communicate information to a multitude of investors, organize roadshows and attend conferences, where they could be speaking to fifty or more investors in one week. A Virtual Data Room can help control the flow of information and third party access, while retaining control of who has access to documents and data.
Investors often seek a VDR prior to releasing the term sheet to ensure they have easy access to information about the business, as well as any other publicly accessible material they can find online. Once a deal is complete it is beneficial to make use of a VDR to provide investors on a quarterly or monthly basis with the main highlights, including financial performance and other qualitative information about the business. Other companies may offer their investors access to a KPI dashboard that they can see in real-time.