There will be a huge number of sensitive documents that need to be made accessible to both parties if a company is involved in a merger or acquisition. This was previously done in a physical location where teams and individuals could access the information and do their due diligence. It was costly and time-consuming to set up, since people had to wait until the final team left before anyone else entered.
The introduction of virtual datarooms has made this process much simpler and less expensive. This technology allows groups and individuals to access the data at any time and from any place with an internet connection. This means that they can perform their due diligence from the comfort of their workplaces instead of having to travel long distances to an actual location. This could save the cost of accommodation, travel, and other expenses. This is particularly beneficial for small-sized businesses who might not have the resources to cover these costs.
Virtual data rooms also have other features that are very beneficial to businesses managing sensitive information. These features include redaction, fence view (which blacks out areas of files so that personally-identifiable information stays private), granular access permissions, multi factor authentication, watermarking and even the ability to track downloads and disable screenshots. Additionally, many reputable virtual data rooms provide a trial period of no cost to users who want to test their services before they commit to using them.