Digitalization has greatly impacted the course of business as a whole. Many of the things companies do now to achieve some goal are fundamentally different from the methods companies used even 20 years ago. Virtual platforms have alleviated a lot of concerns for today’s businesses; they provide easy access, cost and time savings, ease of use, and reliable security. One such tool is the virtual data room. Secure data rooms are unique to all industries in business and can be used in many processes.
Top 6 ways to use VDRs and why
Initially, virtual data rooms were only created for M&A and due diligence, but later as demand grew, the solution reformatted to meet many business needs. Below, we’ll highlight six main areas beyond M&A where data room can be used:
- Business and Asset Sales
The sale of a business or its assets, however, is closely related to the M&A process. The virtual data room has completely replaced the traditional physical storage facilities used by potential clients to research business details before buying. Now they don’t have to travel to a specific location, or even fly to another country to review documents, they can safely access everything they need without leaving their own office.
- Corporate Repository
Any business needs a secure space to store its sensitive data, especially if it’s a large organization with multiple offices in different cities or countries. Now it’s several times easier and safer to share and collaborate on documents. Exchange data with your employees, wherever they are, in real-time, without the use of any extraneous applications, or faxes.
- Secure IPO
If your company decides to go public it needs to collect and prepare a lot of confidential documents. Gather all project participants in one, centralized space, define their access capabilities, store and share the necessary information to implement the process. You’ll be able to track every step of the transaction thanks to task modules.
- Collaborative ventures
VDR will be a real help if you’re going to join forces with another company to carry out the investment process. The Data Room has a wide range of collaboration tools and you can discuss any confidential topics in a special encrypted chat room.
- File Sharing
VDR’s highly secure space allows you to share sensitive data even with outside users. Everyone knows that e-mail is not suitable for this type of activity and that sending printed versions of a document is costly and time-consuming. Control the level of access to documents yourself.
To get funding, a company must show potential investors either their plans and ideas (if you are a startup) or data on past activities. Keep all necessary files in the VDR and give investors access to view these materials. Easy and convenient along with the data room.
VDR – NDA electronic signature benefits
Virtual data rooms provide really serious security features on the level of bank protection systems. You can even trust the space with important documents such as intellectual property or trade secrets. VDRs use NDAs in their operations, which you can generate and provide to a third party before you open access to sensitive data. An NDA is a legal document that obligates the consenting party not to share confidential company information.
Electronic NDA signatures have the same legal effect as a signature on physical paper. There are a number of advantages to using this feature. It provides speed in signing a contract, doing it online you don’t have to wait long for a confirmation. It also plays a big role in security and uncovering impostors – the chance of a forged signature is negated.