The role of a virtual data room is to facilitate document sharing in all sorts of scenarios. A VDR can be used in any project that requires professional and secure document storage, management, and sharing. These include M&As, due diligence reports for investors communication with boards, and many more.
The life science industry, for instance is a source of a wide range of intellectual property which needs to be stored and managed securely and in compliance with the standards of compliance. A Firmex dataroom allows these companies to streamline complex processes for instance, M&A due diligence while maintaining full control of confidential documents and data.
A VDR’s main goal is to accelerate M&A transactions by removing burdens and costs of traditional due diligence processes, such as physical meetings, photocopying etc. This way, businesses can expand their reach in terms of potential buyers and close the transaction faster.
A VDR can also be helpful in other types of investment banking, including capital raising and IPOs. In these cases it’s normal for external parties to need access to private documentation. Accounting professionals, legal counsel, or auditors could require access to documents that are private. A company must find ways to get this done without putting the deal in jeopardy.
A virtual data room is an efficient and secure method to accomplish this, while allowing companies to monitor every activity within the data room via audit logs. This includes who has accessed what and for how long, as well for all downloads of files and printing. You can also add dynamic watermarks from a virtual dataroom to files so that anyone who sees them will know they’re not authorized. This is essential for businesses since it helps in preventing theft of documents.
