What are Virtual Data Room Services?
Virtual data room services are an alternative to a physical space where documentation and commercial data can be stored securely.
Ideal for sharing information with interested parties, perhaps clients or partners, a virtual data room allows secure access via the cloud. For an example of their application, virtual data room services are often used during the process of a merger or a company acquisitions in the circumstance where a seller might need to reveal sensitive information about their business and its assets to multiple interested buyers. Given the way online data rooms work, this can be done securely and with all of the interested parties gaining access to the data that has been stored at the same time.
Typical Services Offered by Virtual Data Room Providers
When multiple parties are in a negotiation, perhaps for a contractual agreement or when managing a merger, there are usually many documents and accounts information which are being exchanged. During this back and forth process, changes might need to be made or details added. Along with such document management services, this means that emailing multiple generations of documents is minimised, thus helping the entire process to remain secure and private. Physical scanning, redacting and collation of paper documents becomes a thing of the past, as do indexing and quality control processes. All of these functions are cared for through a virtual data room services, helping all interested parties to comply with due diligence.
The Flexibility of Virtual Data Room Services
Once a virtual data room has been set up, users can access it from anywhere in the globe they happen to be. However, the client is able to specify which users are authorised to view, print, or copy data that is held in the ‘room’. If a ‘view only’ option is selected, then typically this will mean that documents cannot be saved locally or downloaded and are only accessible on screen. Furthermore, most virtual data room services offer the ability to record which users have accessed which information and when, allowing for real-time reports to be reviewed at any time. So, if a client wants to know which users have accessed the most sensitive documentation, they are able to do so. Unlike physical data rooms, which need to be staffed, a virtual data room is much more flexible and can be accessed 24 hours a day, allowing people in any time zone the ability to read documents at the same time.