What Are Virtual Data Room Services?

A virtual data room is a product of software that provides an online repository for securely sharing and hosting confidential files. These services are used for various transactions and business processes, such as M&As, litigation, and fundraising. They enable business teams to securely and efficiently share documents, encourage collaboration, safeguard sensitive information and automate processes.

VDRs are cloud-based and accessible at any time via desktop computers, laptops or mobile devices. Many modern providers this also offer in-app support that is available 24/7. Support teams are typically multilingual, and have a help center with product videos. VDRs are cost-efficient compared to physical data rooms and their support for customers generally provides more personalized attention than other cloud storage products.

Most VDRs offer a free trial to let users try out the software and determine whether it meets their requirements. This is a great opportunity to get familiar with the program, learn how it operates in practice and whether it can be easily adapted to the business’s workflows and IT systems.

M&A due diligence is the most frequent use case for VDR. M&A deals require a large amount of documentation, and it’s vital that the relevant information is shared with potential buyers in a safe environment that doesn’t risk breaches or compliance violations. To make sure the documents are properly prepared and reviewed, the businesses involved typically rely on specially-designed virtual data rooms to conduct M&A due diligence. This helps companies avoid the expense of sending and receiving large amounts of documents.