The function of a virtual data room is to facilitate sharing of documents in any circumstance. A VDR can be utilized in virtually any project requiring secure and professional document storage, management and sharing. These include M&A, due diligence, investor reporting board communications, and many others.
For instance, the life science industry is involved in all kinds of intellectual property that must be safely stored and managed in accordance to compliancy standards. A Firmex dataroom can help these companies to streamline complicated processes like M&A due diligence, while ensuring full control of confidential documents and information.
A VDR’s main goal is to accelerate M&A transactions by removing difficulties and costs associated with traditional due diligence processes, like physical meetings, photocopying and so on. Businesses can expand their reach in terms of potential buyers, and close the deal faster.
A VDR is also beneficial for other kinds of investment banking such as capital raising and initial public offerings (IPOs). In these situations, it’s common for external parties to demand access to private documentation. For legal counsel, accountants or auditors, a company must find ways to give this access without putting themselves at risk of committing a breach and putting the deal in jeopardy.
A virtual data room offers a secure and efficient method to do this, while allowing the company to keep track of every activity happening in the data room through audit logs. This includes who accessed the data room and for how long as well as any downloads or printing. It is also possible to apply dynamic watermarks files in a virtual data room in order that anyone who is viewing the files will be aware that they’re not legitimate. This prevents document theft and is an important feature that many business users would appreciate.
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