Virtual due diligence rooms are cloud-technology-based platforms that facilitate and expedite the deal-making process. By allowing multiple parties to examine documents at the same time from a central online location, virtual due diligence rooms decrease the time and cost of sharing physical documents. They are also more secure and efficient than traditional methods of sharing information.
VDRs are commonly used in a variety of industries from healthcare to financial services. They are especially useful in M&A capital raising, IPOs and divestitures. They allow legal and investment companies to store, share and access confidential data easily and safely. Unlike common cloud storage solutions, a virtual due diligence room includes numerous additional features that make it more than an archive of files.
Document versioning is an essential feature. This ensures that the most current version of a document is always accessible. A VDR also prevents unauthorized printing which could be a threat in M&A transactions and other transactions that are sensitive. The most recent versions of VDRs also incorporate AI functions that can improve efficiencies and speed up contract review. DFIN Venue, for example offers a variety automated tools, such as auto-indexing, or full-text search.
The best VDR for due diligence involves knowing what features will meet your specific goals and needs. To avoid spending money on an application that does not meet your needs, search for a system that has an easy-to-use user interface and built-in support. Utilize the free trials to test the software and ensure that it meets your needs.
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