For many industries, the use of the virtual data room is a key component in projects that require secure document storage and management, as well as sharing. This is particularly true in M&A transactions, where sensitive data must be safely transmitted and scrutinized to ensure due diligence. A specifically designed VDR is typically more efficient and economical than physically transporting confidential information between the parties.
Additionally virtual data rooms are much more intuitive and user-friendly than messaging or email. The top providers provide an easy-to-use interface that requires minimal training to get up and running. They also permit access to granular permissions, meaning that admins can decide whether a document is able to be printed, downloaded or read. They can also keep track of activity to determine who spends the most time on each document page. This lets them assess the level of interest. Top-tier VDRs also integrate eSignature tools like DocuSign that allow users to sign contracts and other documents directly within the platform.
Several other industries commonly rely on virtual data rooms for their due diligence procedures, including capital markets and banking (for loan syndication and venture capital and private equity deals) as well as life sciences companies (for everything from clinical trial results to HIPAA compliance) and engineering firms (for collaboration on projects). Whatever the field it is a common belief that they can be more productive when they use virtual data rooms because all work-related documents are stored in one place instead of being scattered across several places and devices, and can be accessed at any time, anywhere.