In high-risk transactions and strategic negotiations, it’s important to have a secure way to share documents. Utilizing a virtual space (vdr) is a faster and more efficient way to work with other stakeholders without taking the risk of leaking sensitive information accidentally or maliciously. When choosing a vdr, make sure that you choose one that safeguards sensitive business information by using security features like restriction on users and documents, MFA, granular activity tracking and watermarking.
A vdr can be utilized to aid due diligence in mergers and acquisitions (M&A). Private equity and venture capital companies typically examine multiple deals at the same time creating a huge amount of documentation that require organization. Instead of relying on filing cabinets or email, these companies rely on VDRs to organize their documents and share them with auditors, potential buyers and other stakeholders.
In the same way, investment bankers have to securely share a wide variety of documents as they undergo investment banking processes such as IPOs and capital raising. They may also be responsible for analyzing massive data to find patterns and formulate their corporate strategy. To safeguard their intellectual property, these banks require a platform to host huge amounts of sensitive data while keeping control of who has access to what.
When selecting a vdr ensure that it comes with industry-leading encryption technology that scrambles the contents of files. It also prevents unauthorized users from gaining access to your confidential data. Look for a vdr that comes with built-in login monitoring that monitors the IP as well as device and location to ensure the identity of users is verified before they can access your file repository. The vdr must also offer the level of file and document digital right management to prevent files from being printed, copied or downloaded without your consent.