Whoever has the information has the power. However, now the main task of any entrepreneur is not only to obtain valuable information, but to keep it safe from third parties.
Before, this was achieved with the help of huge data rooms full of papers and with security guards 24 hours a day. But now all you need is an Internet connection and a reliable digital data room software.
What is data rooms software?
A Virtual Data Room represents a digital platform designed to offer businesses a safe method for storing, handling, and distributing private and sensitive data.
A growing variety of businesses from diverse fields, including Information Technology and e-commerce, are steadily incorporating data room software into their everyday operations. Even with this broad uptake, the banking, financial services, and insurance (BFSI) sectors still constitute the main clientele for these digital solutions.
What is the reason for so much popularity and growing market size? The answer lies in the main priority of any negotiator: the protection of data. There must be confidence in the reliability of data storage, its exchange, approval and communication between both parties. In this article we will delve into the benefits of due diligence data room for different business activities.
6 main benefits of virtual data rooms
Here are the main benefits of VDRs like Caplinked:
High level of data protection
This is the main reason why negotiators choose virtual data rooms for mergers and acquisitions agreements and due diligence. All thanks to a wide range of features that the best data rooms offer: encryption, two-factor verification, user activity reports and more. The most important thing is that all virtual data rooms are audited and certified (certifications may vary).
The first priority of negotiators is to ensure the security of documents that consist of sensitive information. When using a data room, they can feel more secure due to such features as fence view, remote shredding and deletion, and time restriction and IP access.
Unlike a physical dataroom, a virtual data room significantly reduces the amount of time required for any process, like buying other companies or M&A. Starting with the preparation and leading to the post-closure integration, the data room software accelerates every step of the process.
A traditional data room requires spending dozens of hours for negotiators to meet, examine the documentation and reach an agreement on the final decision. On the contrary, all these actions can be performed in a couple of clicks with the help of the virtual data room providers. In one minute, users can upload and review all the necessary files, add new members to the team and have access to several documents simultaneously.
All the stages of using a physical data room described above not only require a lot of time, but also increase costs. During the preparation and while the entire negotiation process lasts, many actions incur a significant amount of expenses, such as travel and accommodation for both sides or printing documents.
More importantly, the best data rooms are a highly efficient solution that helps to close a deal faster, which means less expenses. Instead of dealing with dozens or hundreds of expensive actions, you can pay a one-time fee for using a virtual data room software that takes care of everything.
Communicating with colleagues is no longer a challenge. A physical data room made the connection with co-workers quite uncomfortable, but now communicating is very easy in a virtual space. Give the teams on both sides of the deal the opportunity to be in touch at any time and from anywhere.
In addition, numerous data room software tools optimize the communication process. If the negotiators have any questions, there is a question and answer section. If you want to discuss some points of the deal, a virtual data room gives you a live discussion. Most software providers offer support in several languages to suit international customers.
Easy to use
The way a data room is created and how it works allows its users to feel comfortable using all its tools. To the extent that it speeds up the process of any deal, the data room software is quite simple to learn and navigate. From a simple structure to mass upload options, everything is configured so that users only need a few minutes to find the required files and perform the necessary actions.
In addition, the simple design from online data room providers makes it very intuitive. Most virtual data room software companies are responsible for the convenience of the daily use of negotiators, so they create mobile applications. All this, combined with the ability to simultaneously load and download a large amount of data, speed up the process of any deal.
Each company has its own expectations and desires about its data room software. That’s why the best data rooms provide their customers with customization options. Therefore, suppliers can create an easily recognizable virtual space so that customers can identify it by incorporating the logo and colors of their brand.
The virtual data room is an innovative online software for the secure exchange and storage of documents in various business processes.
Cooperation with an accredited virtual data room not only increases the speed of transactions and makes the realization of business processes more convenient for participants, but also affects the result.