It wasn’t that long ago that many businesses required physical data rooms to house sensitive and confidential data for buyers, investors and clients. In addition to taking up valuable physical space, this required parties to travel to view those documents. Today, a physical space is no longer required to store data. That’s where virtual data rooms come in. If you’re interested in getting a virtual data room for your business, read this brief guide to find out more.
What is a Virtual Data Room?
A virtual data room is an online portal for storage of data. It is highly secure, only allowing authorized users to access documents and data. Multiple parties can access the information, which is stored in electronic form on a central server. It doesn’t matter where a user is; the data can be accessed from anywhere, given that the person has authorization. The owner of the data room controls document access. Permissions can vary from online viewing only to printing or downloading. Each user’s activity is tracked to create an audit trail so there’s never any question as to who has accessed the information.
Why Use Virtual Data Rooms?
For businesses such as hospitals that deal with sensitive documents and confidential information, virtual data rooms offer security and flexibility that are simply not available in basic consumer file sharing services. Use of virtual data rooms ranges from simple to complex systems, depending on the needs of a particular business. One way to use a ShareFile virtual data room is as a virtual library where you can store and share your most important confidential business files. Advanced users may use virtual data rooms to conduct transactions like the sale of assets where contracts are stored, shared and revised as needed. For those involved in complex business transactions, multiple parties can view information, analyze documents and communicate with the seller. This allows clients to get the information they need immediately without compromising security.
What to Look for in a Virtual Data Room
When shopping for a provider for your virtual data room, you need to ensure that they offer some key features and services. First, the system needs to be easy to use. You and your staff don’t have time to waste learning an intricate file sharing system. The virtual data room should be highly secure, offering encryption during storage and transfer. The system should create reports and audit trails so you can see who has accessed, downloaded and shared documents in your data room. Finally, you’ll need to choose a provider with excellent customer support.
For conducting secure transactions, a virtual data room is the best solution to having dedicated physical space in your office. You’ll have increased control of your documents and better access to bidders and buyers. Transactions can be conducted much faster, and no one has to deal with costs of travel or printing out unnecessary paperwork. Basically, virtual data rooms save both time and space for those involved in mergers and acquisitions.