VDRs are used most often to facilitate M&A transactions, but they can also be used for other business processes that involve confidential data. Venture capitalists, for example, often use VDRs to review company documents as part of investing and funding processes. Virtual data review is also a good fit for investment banking processes, such as capital raising and IPOs.
A VDR allows for multiple bidders conduct due diligence at the same time, which is much faster than an actual meeting. As a result, the ability to cast a wider net in terms of potential buyers increases the likelihood that a deal will be finalized sooner than if the process were conducted with just a few investors.
A VDR also eliminates the time-consuming and expensive photocopying. VDRs are https://howtobeaphotographer.org/top-5-instagram-alternatives-for-photography accessible from anywhere and can save travel costs. VDR vendors like Ellington boast lower upfront costs, and the ability to use the VDR by all bidders simultaneously.
Security is paramount in a VDR, as it is with all technology systems. Look for platforms that offer a fence view feature to prevent unwanted glances. They should also provide multi-factor authorization, IP-restricted users access and a history of page-bypage document viewing. Ensure that the solution you choose is SAS 70 compliant, and that it encrypts data within PDF files. Finally, check whether the vendor provides a variety of project templates and customizable branding options.
