How to Set Up a Virtual Information Room
In the wake of several security breaches that have been a major focus, businesses have increased the need to share private documentation securely with outside parties. A virtual information room (VDR) facilitates many types of document sharing and due diligence processes by providing users with access to documents from any device connected the internet. These rooms can be used for a variety of reasons and are typically used in M&A deals and venture capital financing and other transactions that require extensive documentation sharing and analysis.
To create a VDR you should first find an accredited service provider who offers a transparent pricing model and support for customers. Then, transfer the existing data to the platform. Check that the documents are organized and indexed in a way that makes it easy to search. Also, ensure that permissions for users are set up based on roles. Last but not least, ensure that your team is properly trained to use the VDR. This includes ensuring that your team understands the security protocols and best practices for document-management within the platform.
VDRs can be used to manage intellectual property like trademarks as well as patents and research data. They are designed to protect the data from misuse and also to stop IP theft in various business transactions by implementing features like watermarking and selective distribution, expiry of documents and downloading restrictions.
In an M&A, it’s common to trade a lot of private information between the buying company and the selling. This could include financial records, legal documents, and employee information. A VDR helps organize the data and allows both parties to conduct due diligence quickly and efficiently.
