How to Set Up a Virtual Information Room

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In the wake of several high-profile information breaches, companies have stepped up their efforts to share private documentation securely with external parties. A virtual information room (VDR) is a device that allows users to access documents from any device connected to internet allows for a variety of types of document sharing and due-diligence processes. The rooms can be used for a variety of reasons and are frequently used in M&A deals or venture capital financing and other transactions that require extensive documentation sharing and analysis.

To create a VDR you should first find a reputable service provider who has a transparent pricing structure and customer service. Then, migrate the existing data to the platform. Make sure that the documents are organized and indexed correctly to make it easy to find them. Also, ensure that permissions for users are set in accordance with roles. And lastly, educate your employees on how to use the VDR. This includes making sure that your team members are aware of security protocols and the best practices for document-management within the platform.

VDRs are particularly useful to manage intellectual property, such as trademarks, patents, and research data. They are designed to protect the information from misuse and stop IP theft throughout various business transactions by implementing features such as watermarking or selective distribution, document expiry and download restrictions.

In the course of an M&A the common practice is to exchange a large amount of sensitive information between the purchasing company and the selling. This includes financial records, legal documents, and employee information. A VDR can organize this data so that both parties can conduct due diligence swiftly.