News

The Complete Beginner’s Guide to Virtual Data Rooms

SmartRoom virtual data rooms connect you to what you need.A virtual data room (sometimes called a VDR) is an online repository of information that is used for the storing and distribution of documents. In many cases, a virtual data room is used to facilitate the due diligence process during an M&A transaction, loan syndication, or private equity and venture capital transactions. This due diligence process has traditionally used a physical data room to accomplish the disclosure of documents. For reasons of cost, efficiency and security, virtual data rooms have widely replaced the more traditional physical data room.

Disadvantages of a physical data room

  • Time consuming
  • Narrow bandwidth
  • Expensive
  • Cost of travel
  • Paper intensive

Benefits of a virtual data room

The largest financial benefits accrue to the seller although buyers also benefit. For the former, advantages include:

  • Improvement in the number of bidders
  • Increased bid throughout (and time zone access) if the virtual data room is accessible 24/7 over the allowed period
  • Increased control and understanding of bidders
  • Increased speed of transactions owing to improved accessibility
  • Information cannot be downloaded and taken away in a true Virtual Data Room – only viewed by a user with the correct permissions
Just give us 1% of your trust and we’ll earn the rest. Try SmartRoom Services risk-free today.