A virtual data room is a program that allows an online repository for securely sharing and hosting confidential data. These services are utilized for various business processes and transactions such as M&As, litigation, and fundraising. They allow business teams to efficiently and securely share documents and collaborate, safeguard sensitive information and automate processes.

VDRs are cloud-based, and can be accessed at any time, using laptops, desktops, or mobile devices. A lot of modern providers offer 24/7 in-app support. Support teams are usually multilingual and have an assistance center that contains videos of the product. VDRs are less expensive than physical data rooms and their customer support generally offers more personal attention than regular cloud storage products.

Most VDRs offer a free trial period that allows users to test the software and decide whether it’s suitable for their needs. This is a great opportunity to get familiar with the software and experience how it performs in actual. It also allows users to determine if the software can be easily adapted to your business’s processes and IT systems.

Due diligence in M&A deals is the most popular use of a VDR. M&A deals require a lot of documentation, and it’s vital that the relevant information is communicated to potential buyers in a secure environment without putting at risk breaches and compliance violations. To make sure the documents are properly prepared and reviewed, the companies that are involved frequently rely on custom-designed virtual data rooms to conduct investment due diligence M&A due diligence. This helps companies save the cost of sending and receiving large amounts of documents.