Virtual Data Room Blog

When should you use a Virtual Data Room

Apr 20, 2010 4:36:18 PM / by Francisco Lorca

In general, you should consider engaging a virtual dataroom (VDR) provider to share and control documents with an outside party while maintaining confidentiality and being able to track access to a given document. In particular some of the areas you should focus on are:

  • Preparing documents for a transaction, especially when documents need to be put together from different sources and shared with different parties.

  • Circulating information memoranda or teasers. A good virtual data room will make the process easier and will provide valuable tracking and audit information.

  • Turning around drafts of legal agreements. A good dataroom offers a very simple, secure and easy-to-use document versioning system without the expense of complex dedicated document sharing platforms.

  • Conducting due diligence, as a substitute for a paper or email-based data room.

  • Closing a transaction, as a substitute for hard copy deal bibles. Very useful when reps and warranties are a key component of the transaction.

Topics: M&A, virtual data room, ethosdata, Uncategorized, Hedge Fund, IPO, due diligence