The role of a virtual data room is to facilitate document sharing across all types of situations. In fact it is true that a VDR can be used in virtually any endeavor that requires secure and professional documentation storage, management and sharing. This includes M&A, due diligence, investor reports board communications, and many others.
The life science industry, for instance has a range of intellectual property that needs to be managed and stored securely, in line with compliance standards. A Firmex dataroom allows these companies to streamline complex processes like M&A due diligence while keeping full control of confidential documents and data.
A VDR’s main goal is to accelerate M&A transactions by removing the hassles and costs of traditional due diligence processes, such as physical meetings, photocopying etc. Businesses can reach a greater market of potential buyers and close deals faster.
A VDR is also beneficial for other kinds of investment banking like capital raising and initial public offerings (IPOs). It is not uncommon for outside parties in these situations to require access to private documents. If it’s legal counsel or auditors or accountants, a company must find ways to grant access without risking breach and putting a deal at risk.
A virtual data room provides the security and convenience informative post to do this, as well as it allows the company to track every activity happening in the data room through audit logs. This includes who accessed what and for how long, as well as all file downloads and printing. It’s also possible to add dynamic watermarks to files in a virtual room in order that anyone who is viewing the files will be aware they are unauthorized. This can prevent the theft of documents and is an important feature that many users in the business world would appreciate.