How to Set Up a Virtual Information Room

In the wake of a number of high-profile information breaches, companies have increased the need to share confidential documents securely with external parties. A virtual information room (VDR) allows for a variety of document sharing and due diligence processes by allowing users to access documents from any device connected to the internet. These rooms are used for various reasons, including M&A transactions and venture capital financing, as well as other transactions requiring large amounts of documentation sharing and analysis.

To create a VDR begin by finding an established provider that has a transparent pricing structure and customer support. Then, transfer the existing data to the platform. Make sure that the documents are properly indexed and organized for easy retrieval. Also, ensure that user permissions are in place in accordance with the roles and responsibilities. Additionally, you should train your team on how to utilize the VDR. This includes ensuring that your team members are aware of security protocols and best practices for document management within the platform.

VDRs are particularly beneficial to manage intellectual property such as trademarks, patents, and research data. They are designed to protect the information from misuse and stop IP theft in various business transactions by implementing features such as watermarking and selective distribution, expiry of documents and download restrictions.

During a M&A is common to exchange a large amount of sensitive information between the purchasing company and the selling. This could include financial records, legal documents, and employee information. A VDR www.dataroomconsulting.com/pros-and-cons-of-cloud-computing manages this information and allows both parties to conduct due diligence quickly.