Physical data rooms are quickly being replaced by virtual data rooms, partly because of the complex procedures that are necessary to protect the information held in these rooms.
Having confidential deal information in a specific location means that the parties in the deal need to travel to and from the location each time they view documents, which also results in high costs associated with transport, accommodation, premises, and security.
Another complex issue is the on-site management of the venue, which needs to be restricted to only those who are essential to the due diligence process. The use of Virtual Data Rooms over the years over its physical counterpart in many ways.
Let’s take a closer look at the procedures involved in using a physical data room: