When conducting high-stakes transactions and strategic negotiations, it’s important to have an encrypted platform for sharing documents. Using a virtual data room (vdr) is a quicker and more effective method of collaborating with other stakeholders without taking the risk of leaking information inadvertently or maliciously. However, when choosing the right vdr, you must be sure to choose one that protects your sensitive business data by implementing security features like restriction on users and documents MFA, granular activities tracking and watermarking.

The most commonly used usage of a vdr is providing due diligence for mergers and acquisitions (M&A) procedures. Private equity and venture capital firms often examine multiple deals at the same time producing a large amount of documents which require organization. Rather than relying on filing cabinets or email, these companies depend on VDRs to organize their documentation and share it with auditors, potential buyers and other stakeholders.

Investment bankers must also securely share a range of documents when performing investment banking procedures like IPOs and raising capital. They could automation tools for your own technology due diligence be accountable for studying large quantities of data to identify patterns and inform their corporate strategy. To safeguard their intellectual property, these banks require a platform that can house large quantities of sensitive information and still maintain the control over who is able to see what.

When selecting a vdr, be sure it utilizes the most advanced encryption technology to encrypt the contents of files, and prevent unauthorized users from accessing your confidential data. A vdr that has integrated monitoring of logins will look up IP devices, location, and IP to verify the identity of the user before they can access your file repository. Ideally the vdr must provide document and file-level rights management to prevent files from being printed, downloaded or copied beyond your control.