www.internationaldataroom.com/what-are-the-benefits-of-using-a-virtual-data-room/

A virtual data room is a tool that lets companies share private documentation securely. This kind of tool is particularly useful during business transactions in which external parties need to scrutinize sensitive information. A VDR is a great alternative to sending documents via either hard copy or email. It also allows companies to monitor the activities of document users. It also comes with additional security features like timeouts, auto-expiration and reports on document usage.

The most secure VDR providers are audited on a regular basis to ensure the highest security level, in line with ISO 27001 certification and GDPR requirements. The most reliable providers will provide advanced features, such as dynamic watermarking, which adds an individual label to each document with the email address of the recipient and IP address to stop the sharing or use of documents that are not authorized. They also offer an encrypted document reader that lets users view documents without having to download them or expose them for possible dangers.

A virtual dataroom can be an excellent tool for businesses who need to collaborate with multiple parties. This includes attorneys, accountants, regulators and adjusters, both internal and external. They can save companies significant sums of money by providing an integrated system that can share information and communicate effectively across different time and location zones. They also allow them to conduct due diligence and make strategic decisions more quickly than they would with paper-based systems. These advantages have made use of VDRs quite common, particularly in M&A transactions.