What Are Virtual Data Room Services?

A virtual data room service is a software product that provides an online repository for securely sharing and hosting confidential data. These services are utilized in a variety of business transactions and processes including M&A litigation, M&A, and fundraising. They allow teams in business to share securely and efficiently documents, foster collaboration, secure sensitive data and automate the process.

VDRs are cloud-based and accessible at any time, via laptops, desktop computers or mobile devices. A majority of modern providers provide 24/7 support in-app. Support teams are typically multilingual, and they have a help center with videos of their products. VDRs offer a cost-effective alternative to physical data rooms. Their customer service is usually more personal than that of regular cloud storage.

The majority of VDRs offer a free trial period that allows users to try the software and determine whether it’s suitable for their needs. This is a great way to gain knowledge about the program and experience how it performs in real life. It also allows you to determine if it can be easily tailored to your company’s IT systems and workflows.

Due diligence in M&A deals is the most frequent use of VDR. M&A deals involve a lot of documents, and it’s crucial that the relevant information is communicated to potential buyers in a secure environment, without risking breaches or compliancy violations. For M&A due-diligence, companies often make use of virtual data rooms which are specifically designed for this purpose. Companies business exit strategy can save costs of sending and receiving large quantities of documents.