How to Set Up a Virtual Information Room

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) allows for a variety of document sharing and due diligence processes by permitting users to access documents from any device connected to the internet. These rooms can be used for a variety of purposes and are commonly used in M&A deals as well as venture capital financing and other transactions that require extensive documentation sharing and analysis.

To create a VDR you need to first locate an experienced service provider that provides a transparent pricing system 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 the permissions for users are dataroomconsulting.com/how-much-should-a-virtual-data-room-cost/ set up based on roles. Finally, provide training to your staff on how to use the VDR. This includes ensuring they are aware of security procedures and the best practices for managing documents within the platform.

VDRs are particularly useful in managing intellectual property, such as trademarks, patents, and research data. They are designed to prevent IP theft and protect this data from unauthorized use by implementing features such as watermarking and selective dissemination, document expiry and download restriction.

In an M&A process it is normal to find a substantial amount of confidential information to be transferred between the selling and buying company. This could include financial records, legal documents and employee data. A VDR helps manage this information and allows both sides to conduct due diligence swiftly and efficiently.