Businesses from all industries need to evaluate a deal using VDR before negotiating any deal. Virtual data rooms (VDRs) are a fantastic option to safeguard sensitive information when companies need to share data with external entities such as lawyers, accountants or compliance auditors. The most common use for VDRs is due diligence during mergers and acquisitions, where several parties are reviewing a large number of documents. A VDR lets all parties review the documents in an secure online environment. It also helps to prevent leaks that could hurt the business.

Venture and private equity firms typically analyze multiple deals at once that result in reams of documents that require organization. They depend on VDRs to enable them to efficiently review the documents without having to spend hours searching through emails or Excel spreadsheets. They are looking for a vendor who offers an interface that is easy to use on many devices, and that allows them to access their VDR at any time. They also need a vendor which offers a variety of file format support and features that facilitate collaboration between different stakeholders.

VDRs are also used heavily by life science firms that are dependent on intellectual property and research. The secure platform lets them share confidential documents with investors and partners while keeping them hidden from competitors. Additionally, startups can utilize the VDR to gauge interest from potential investors by observing which areas of the company’s documentation are the most popular with investors. SS&C Intralinks provides quarterly variations in the number of VDRs created or planned to be created. This provides a picture find this of trends for M&A activity.