5 Use Cases For Virtual Data Rooms

Virtual data rooms offer a secure and cost-effective alternative to traditional storage and sharing of documents. They can be used to facilitate a wide range of business transactions like mergers and acquisitions, strategic partnerships, fundraising, intellectual and property management, audits, board communications and corporate development.

Mergers and Acquisitions

Virtual data rooms are most often used in mergers and acquisitions in which companies may need to review or provide large quantities of documents as part of due diligence. These amounts can result in a long and expensive affair and, therefore, VDRs allow buyers to access the information they require without needing to travel to the seller’s office.

IPOs

Companies who decide to go public need to be transparent with shareholders as well as the public. They also require an effective method for sharing documents. https://blackdataroom.com/virtual-data-room-guide-learn-everything-about-vdr/ They can utilize virtual data centers to share information with investors, lenders, shareholders, and other parties, while also protecting their private information from competition.

Litigation

Secure virtual data rooms are used by law firms and their clients to shield sensitive data from lawsuits or from competition. They can set the files to view-only and limit access to specific users, preventing them from sharing information that could cause harm to the case.

Estate and Exit Planning

Often, attorneys have to share sensitive information with other parties during exit and estate planning as well as real estate transactions. They can utilize a secure virtual data room to manage the process and keep all the documents in one place. This makes it easier for attorneys to share information with their colleagues.