What Is a Virtual Deal Room?

A virtual deal room (or virtual repository) is a repository online which holds private documents that must be shared among multiple parties involved in a transaction. It is usually used for M&A and due diligence as well as capital raising and estate transactions. It provides users 24/7 access to corporate information, and it is protected by high security. It can be set up for any kind of file or document. Administrators can set user permissions to restrict who can access what.

In contrast to traditional email attachments or cloud storage, VDRs can be accessed and viewed by any browser or device that is crucial in an M&A process where teams may be spread out across several locations. It’s also safer and secure, with features such as encryption, granular access permissions and audit trails to guard virtual deal room against data breaches. VDRs can also help reduce paper usage and associated carbon footprint, which is a plus for any environment-conscious organization.

Virtual deal rooms are an ideal tool for businesses that need to create complete sales proposals more quickly than their competitors. Manufacturing companies that require to give product specifications to potential buyers or service contracts as well financial services companies who have to manage pricing maths and terms of service.

Legal teams typically employ VDRs to collaborate on cases and share confidential documents with clients, other lawyers, and regulators. They are particularly useful during M&A when there are multiple stakeholders that require access to the information needed to make decisions and ensure compliance with regulatory requirements.