How to Set Up a Virtual Information Room

In the wake of several prominent breaches of information, companies have stepped up their efforts to securely share their private documents with outside parties. A virtual information room (VDR), which allows users to access documents on any device connected to the internet allows for a variety of types of document sharing and due-diligence processes. These rooms can be used to serve a variety of functions and are often used during M&A deals and venture capital financing and other transactions that require extensive document sharing and analysis.

To set up a VDR begin by finding an established provider that has a transparent pricing structure and support for customers. Then, you can transfer existing data to the platform. Make sure that the documents are properly indexed and organized for easy retrieval. Also, ensure that permissions for users are set based on roles. Finally, provide training to your staff on how to make use of the VDR. This includes ensuring that they are aware of the security protocols and best practices for managing documents within the platform.

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

During an M&A process it is commonplace for a significant amount of confidential information to be exchanged between the buying and selling company. This information i loved this can include financial documents and legal records and employee data. A VDR organizes this data so that both parties can conduct due diligence in a short time.