A virtual data room (VDR) is an application that allows for secure sharing and collaboration of sensitive documents. Many companies utilize VDRs to facilitate important business processes, such as due diligence, mergers, fundraising and purchases.
While some VDR vendors boast of their ability to serve every industry, most vendors specialize in a specific area. To narrow the field companies should search for vendors who have testimonials from their clients within their industry and a demonstration of the types projects that their software is able to handle.
Legal firms employ VDRs to share confidential documents in litigation and business transactions with attorneys, clients, and other third parties. VDRs streamline the process of sharing documents between the parties involved in real estate and immovable property transactions. VDRs are used by private equity funds to communicate with their auditors, limited partners and management of the portfolio company.
Companies that are in the banking and finance industry should seek out a VDR that has a user-friendly interface, multi-language support, and integration with their current IT systems. They should also consider the types of files and folders that they need to store and share. In addition, the vendor should offer a go to this Ultimate Guide to Data Room Set Up for Financial Reporting variety in pricing models including per-storage and per-page and a flat monthly cost. Some providers offer a free trial or a tiered price structure to let users test the service before committing. A quality VDR is easy-to-use and has a simple interface that combines robust features to meet the needs of diverse industries.