During a transaction seller must ensure that the right document was presented and that due diligence was conducted. The built-in controls for tagging and versioning in a VDR can be a huge assistance. These tools let buyers verify that they’ve reviewed the correct version of a file, and help keep deals on track with transparent audits.
Companies may need to share sensitive information with other parties in preparation for a commercial launch or IPO. A VDR provides the most secure method for stakeholders to view and collaborate on these files without fear of leaks of information. The best VDR providers provide watermarking with 256-bit encryption, multifactor authentication, and baked-in security of the infrastructure. They also offer invitation delay, adjustable viewing rights, and automatic indexing.
Mergers and acquisitions (M&A) are typical use cases for the use of a VDR, as they involve sharing large amounts of confidential information with prospective buyers. Using VDRs VDR helps make this process more efficient and easy for both parties to manage, and helps protect confidential information in the event that a deal does not occur.
Selling businesses can be difficult and requires the presentation of a Financial Model, Information Memorandum and other important documents. A VDR lets the seller securely share these files with prospects, who can sign a non-disclosure contract before they can review the documents. This streamlines the sales process by making it easier to schedule meetings and paperwork, and also reduces costs by eliminating the need for travel and other costs.