Online data rooms provide a user-friendly, secure platform for sharing and working on sensitive documents. They are utilized in a variety of projects that require high level security and privacy, such as M&A transactions as well as venture capital and private equity financings, lending and loan syndication and due diligence and litigation support.
Online deal rooms are an excellent tool for M&A due diligence, when both the sell-side as well as the buy-side have to prepare and go through a lot of documents. The ability to have all the documents in one place, and secure, allows both parties to make fast decisions. It also reduces the risk that a deal might fail because of the disclosure of sensitive information.
To safeguard sensitive data, most virtual data rooms have specific document permissions that allow administrators to define access policies for each folder and file in the repository. They can also enable redaction, fence view (which blacks out certain areas of files to ensure personally-identifiable data stays private) and prevent screenshotting. Furthermore, many VDRs have security certificates that verify their credibility, such as ISO 27001, SOC 1/2/3 GDPR, SOC 1/2/3 and HIPAA.
Another major benefit of deal rooms online is that they permit a seamless integration with existing systems and tools via APIs. This makes them compatible with various popular applications and programs, including Microsoft Office, email and chatting apps. This greatly streamlines workflow and enhances collaboration and communication. Many deal rooms online offer 24/7 customer service via various channels, and a variety training videos to get users to get started.
