After a number of high-profile data breaches, companies are becoming concerned about sharing confidential documents securely with third-party. A virtual information room (VDR) that allows users to access documents from any device connected to the internet allows for a variety of types of document sharing and due diligence processes. These rooms can be utilized to serve a variety of functions and are often used during M&A deals and venture capital financing and other transactions that require extensive documentation sharing and analysis.
To set up a VDR begin by locating an reputable service that has an open pricing structure and support for customers. Then, migrate existing data to the platform. Make sure that the documents are properly indexed and organized to make it easy to find them. Also, ensure that permissions for users are set up based on roles. Not to mention, make sure that your team is trained to make use of the VDR. This includes ensuring that your team understands the security protocols and best practices for document management within the platform.
VDRs can be used to manage intellectual property like trademarks or patents as well as research data. They are designed to guard against IP theft and safeguard this data from misuse by implementing features like watermarking, selective dissemination, document expiry and download restrictions.
During a M&A, it’s common to trade a lot of confidential information between the buying company and the selling. The information could include financial documents and records of legal nature, as well as information about employees. A VDR organizes this data, allowing both parties to perform due diligence quickly.
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