How to Set Up a Virtual Information Room

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In the wake of a number of security breaches that have been a major focus, businesses have been forced to share confidential documents securely with external parties. A virtual information room (VDR) can facilitate a variety of document sharing and due diligence processes by permitting users to access documents from any device that is connected to the internet. These rooms are used for many purposes, including M&A transactions as well as venture capital financing and other transactions requiring large amounts of documentation sharing and analysis.

To set up an VDR you should first find a reputable service provider who has a transparent pricing structure and support for customers. Then, move existing data onto the platform. Make sure that the documents are properly indexed and organized for easy retrieval. Also, ensure that the permissions for users are set up based on roles. And lastly, train your team to utilize the VDR. This includes ensuring that your team is aware of security protocols and the best practices for document-management within the platform.

VDRs are particularly helpful in managing intellectual property, including trademarks, patents, and research data. They are designed to stop IP theft and to safeguard data from unauthorized use by implementing features like watermarking and selective dissemination, expiry of documents and download restriction.

In an M&A process it is normal to have a lot of confidential information to be exchanged between the selling and buying company. This includes financial records, legal documents, and employee data. A VDR helps to organize this data and allows both sides to conduct due diligence swiftly and efficiently.