VDRs are most commonly used to facilitate M&A processes, but can also be useful for other business activities involving confidential information. For example, venture capitalists often rely on VDRs when reviewing company documents in connection with investing and funding processes. Virtual data review is also a good fit for investment banking processes, such as capital raising and IPOs.

A VDR allows multiple bidders to conduct due diligence simultaneously, making the process much faster than a physical meeting would be. As a result, the ability to cast a wider net in terms of potential buyers increases the likelihood that a deal will be finalized sooner than if the process were conducted with just a few investors.

A https://howtobeaphotographer.org/10-exercises-that-will-make-you-a-better-photographer VDR can also save time and money by eliminating the need for photocopies and indexing. And because it is possible to access a VDR from anywhere, it can save on travel costs. VDR vendors like Ellington boast lower upfront costs, and the ability to use the VDR by all bidders simultaneously.

Security is paramount in a VDR, as it is with all technology systems. Look for a platform that offers a fence-view feature to avoid unwanted glances, multi-factor authentication, IP-restricted user access and page-by-page document viewing history. Make sure that the solution adheres to SAS 70 and encrypts PDF files. Finally, check whether the vendor provides a variety of project templates and customizable branding options.