A virtual deal room (or virtual repository) is an online repository that contains private documents that need to be shared among multiple parties involved in a business transaction. It is typically used for M&A and due diligence capital raise and real estate transactions. It lets users access information about their business 24/7 and with high security. It can be configured to work with any type of document or file. Administrators can set permissions for users to restrict who can access what.
VDRs are accessible and viewable from any device or browser unlike traditional email attachments which are only accessible via cloud storage services. This is essential for M&A processes where teams could be dispersed across multiple locations. They are also more secure thanks to features such as encryption, granular access rights, and audit trails that safeguard against data breaches. VDRs can also help reduce paper usage and associated carbon footprint, which is a plus for any environment-conscious organization.
Virtual deal rooms are a great tool for companies who need to develop complete sales propositions faster than their competitors. Manufacturing companies that must communicate product specifications to potential buyers or service contracts, as well as virtual deal room financial services firms who have to manage pricing maths and terms of service.
Legal teams typically utilize VDRs to collaborate on cases and to share confidential documents with lawyers, clients, and regulators. They are particularly useful during M&A when there are multiple stakeholders that require access to the information needed to make decisions and to ensure compliance with regulatory requirements.