While VDRs are typically associated with M&A due diligence, they can be used for virtually any data sharing process that requires a business avoidable errors in transaction management to share sensitive information beyond its firewall. When it comes to sharing intellectual property to support an IPO or raising funds from limited partners, VDRs can make any document sharing process easier by enhancing effective communications and automating tasks.

Unlike their predecessors that required companies to send physical documents to reviewers Virtual data rooms allow users to view and access documentation on-demand. This is not just faster in the review process, but also ensures that confidential business documents can only be seen by authorized parties. It also eliminates the risk of security breaches and compliancy violations.

A VDR for instance, can monitor user activity with a full audit trail of each document in the room. This includes who has accessed the document and at what time. This feature can be helpful when conducting security audits, as it can demonstrate that only a small percentage of people viewed sensitive documents for business. It is useful in M&A due-diligence as it gives an accurate picture of interest levels, and helps companies identify which documents are the most attractive to investors or bidders.

When selecting when choosing a VDR, choose one that provides customizable reports and real-time analysis to provide administrators with the information they need. It should also provide an easy upload process for multiple users and be easy to navigate on any device, but especially mobile devices.