https://dataroomdc.com/why-do-companies-use-virtual-data-rooms/
A virtual dataroom is a web-based secure repository for sharing sensitive information. Often, VDRs are used during M&A due diligence, but they are also useful for other collaboration processes such as auditing and regulatory reviews, tenders and integration after M&A. A virtual data room is an invaluable tool for any business that wants to streamline its process of collaborating with both external and internal stakeholders.
With the help of a VDR every user can access documents through a web browser or secure agent software. Administrators can establish limits on who is able to access specific folders or documents. They can also restrict who can print their screen or take screenshots. In addition, the admin can limit the time the user can connect to the VDR and their IP address. They can also enable the mode known as a “fence” which restricts the amount of information that a user can see. This is beneficial for those who are worried about someone trying to steal into the VDR.
Companies with large volumes of sensitive documentation could benefit from a VDR to cut down on the amount of time required to work on a project. The VDR can also save money on printing and shipping documents. Users can also access documents without having to travel to the physical location. In the case of M&A due diligence, using a VDR could be a less expensive alternative to paying for the hotel and airfare of experts or bidders who would otherwise need to visit the company’s headquarters to inspect the materials.