VDRs are used most often to facilitate M&A transactions, but they can also be used for other business processes that involve confidential data. Venture capitalists use VDRs as a tool to review documents of companies in connection with investment and funding processes. Investment banking processes such as IPOs and Capital Raising require a lot of documentation exchanges, which are well suited to virtual data review.
A VDR enables multiple bidders simultaneously to conduct due-diligence, making the entire process much faster. 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. https://howtobeaphotographer.org/10-exercises-that-will-make-you-a-better-photographer/
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.
As with all technology systems, security is key for a VDR. Look for a platform with fence-view to avoid unwanted glances. It should also have multi-factor authentication and IP-restricted access. Make sure the solution is SAS 70-compliant and that data in PDF files are encrypted. Last but not least, make sure the vendor offers different project templates with customizable branding options.
