The Benefits of Virtual Data Review

The most common use of VDRs is to facilitate M&A procedures, but they are also useful for other business processes involving confidential data. Venture capitalists use VDRs as a tool to review documents of companies in connection with investment and funding processes. Virtual data review is also a good fit for investment banking processes, such as capital raising and IPOs.

A VDR allows multiple bidders to conduct due diligence simultaneously, making the process much faster than a physical meeting would be. As a result, the ability to cast a wider net in terms of potential buyers increases the likelihood that a deal will be finalized sooner than if the process were conducted with just a few investors.

A VDR can also save time and money by eliminating the need for photocopies and indexing. VDRs can be accessed from anywhere, which reduces travel costs. VDR vendors like Ellington boast lower upfront costs, and the ability to use the VDR by all bidders simultaneously.

Security is paramount in a VDR, as it is with all technology systems. Look for a platform that offers a fence-view feature to avoid unwanted glances, multi-factor authentication, IP-restricted user access and page-by-page document viewing history. Also, make sure that the solution is SAS 70 compliant and encrypts data in PDF files. Check whether the vendor offers customizable branding options and a wide range of project templates.

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