A virtual deal room (or virtual repository) is a repository online with private documents that need to be shared by all parties involved in a business transaction. It is usually used for M&A as well as due diligence capital raise and real estate transactions. It lets users access business information 24 hours a day with high security. It can be configured to host any kind of business document or file, and administrators can configure user permissions to control who can access what.
VDRs are accessible and viewable on any device or web browser unlike traditional email attachments which can only be accessed via a cloud storage service. This is important for M&A processes where teams could be dispersed across multiple locations. It’s also safer with features like encryption, granular access permissions and audit trails that safeguard against data breaches. VDRs can also help reduce paper usage and associated carbon footprint, which is a plus for any environment-conscious organization.
Businesses that require complete sales proposals more quickly than their competition can benefit from a virtual sales room. Manufacturing companies that must provide product specifications to potential buyers or service agreements, as well as financial services firms who must manage pricing and terms of service.
Legal teams typically employ VDRs to collaborate on cases and share confidential documents with lawyers, clients and regulators. They can be particularly helpful during M&A, where many stakeholders require access to the information needed to make decisions and ensure compliance with regulations.
