How to Set Up a Virtual Information Room

In the wake of numerous major breaches of information, companies have been forced to share confidential documents securely with third parties. A virtual information room (VDR) allows for a variety of document sharing and due diligence processes by giving users access to documents on any device connected to the internet. These rooms are used for a variety of reasons, such as M&A transactions, venture capital financing and other transactions that require large amounts of documentation sharing and analysis.

To create a VDR you should first find a reputable service provider who offers a transparent virtual data room pricing pricing model and support for customers. Then, move existing data onto the platform. Ensure that the documents are organized and indexed in a way that makes it easy to search. Also, make sure that user permissions are established according to roles and responsibilities. Not to mention, educate your employees on how to use the VDR. This includes making sure that your team is aware of security protocols and best practices for document management within the platform.

VDRs can be used to manage intellectual property, such as trademarks or patents as well as research data. They are designed to guard against IP theft and safeguard this data from misuse by implementing features such as watermarking, selective dissemination, document expiry and download limitation.

In the course of an M&A, it’s common to exchange a lot of confidential information between the buying company and the selling. This could include financial records, legal documents and employee information. A VDR organizes this data and allows both parties to conduct due diligence swiftly.