VDRs are a safe and easy method of sharing confidential files with third parties during due diligence like M&A capital raising, asset sales, and many other. They eliminate the risk, cost and hassle associated with sending large documents via fax or email. Users who are authorized can access documents at any time without printing or travel.
Investment bankers are among the most common users of virtual data rooms because they typically assist clients in strategic partnerships that require substantial amounts of information exchange and storage. For instance, IPOs or capital raising activities require huge amounts of documentation, requiring the highest level of security and organization. VDRs are ideal for these processes as they permit the management to control access, and easily share information.
The top VDR providers offer industry-leading security technology, including multi-factor authentication (MFA) to verify user identity and permissions settings for file and document access. This prevents unauthorized users from gaining access and allows executives to set up specific controls to ensure that only the parties involved who are involved in a deal have access to the data they need to perform their jobs. Also, make sure that the provider’s servers are located at world-class data centers with multiple levels of redundancy to ensure security and uptime. It is important to check that the provider’s support team is available 24/7/365, to answer any questions and offer assistance when you need it.
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