How to Set Up a Virtual Information Room

Following a string of high-profile data breaches, businesses are becoming concerned about sharing personal documents securely with third party. A virtual information room (VDR) is a device that allows users to access documents on any device connected to the internet and facilitates a variety of document sharing and due diligence processes. These rooms can be utilized to serve a variety of functions and are often used during M&A deals, venture capital financing, and other transactions that require extensive documentation sharing and analysis.

To set up a VDR you must first locate a reputable service provider who offers a transparent pricing model and customer service. Then, move existing data into the platform. Make sure that the documents are properly indexed and organized for easy retrieval. Also, ensure that the permissions for users are set up according dataroomconsulting.com/how-to-prevent-data-corruption-in-master-files-using-top-data-room-providers/ to roles. And lastly, make sure that your team is trained to utilize the VDR. This includes ensuring that they are aware of security procedures and best practices for document management within the platform.

VDRs are particularly helpful for managing intellectual property, including trademarks, patents, and research data. They are designed to safeguard the information from misuse and to prevent IP theft throughout different business transactions by implementing features like watermarking or selective distribution, expiry of documents and download restriction.

In the course of an M&A, it’s common to exchange lots of sensitive information between the purchasing company and the selling company. The information could include financial documents and records of legal nature, as well as employee information. A VDR manages this information, allowing both parties to conduct due diligence quickly.