Virtual Data Rooms – an introduction April 20, 2018 by admin Virtual Data Rooms literally mean “data room”. This is a physical or virtual space used by a private or public entity to store a large amount of information (usually confidential as part of a due diligence project) that authorized persons can access through an access remote. Who uses a virtual data room and what are its advantages? Explanations. The factors involved Some companies handle a significant amount of confidential data that they must disclose to their suppliers, customers or employees (contract, financing, minutes, accounting information, etc.) through collaborative tools. The virtual data rooms are particularly used internationally, during a merger or acquisition. Some public sectors that have opted for de-materialization, including the legal and administrative sectors, manage and share sensitive and voluminous files, sometimes including thousands of documents. The advantages of virtual data rooms One of the great advantages of a virtual data rooms is the saving of time and transparency. Thanks to the integration of a real workflow and space thanks to the electronic management of documents. It is possible to store in a single location a large volume of data that potential investors can easily consult and when they want via a secure password. Software makes it possible to optimize data protection by limiting or prohibiting copying and printing. The virtual data room ensures better monitoring of an ongoing project or sales opportunities through the display of established connections. The case of a business transfer: the interest of the virtual data rooms Selling a business is a time-consuming operation, involving a large number of stakeholders (customers, suppliers, employees) and sharing a large number of confidential documents. The virtual data rooms makes it possible to centralize this information and to provide potential buyers with all the information they need before an acquisition. The virtual data room, a crucial tool for due diligence: As part of a business transfer, prospective buyers collect a multitude of accounting, financial, legal, tax, legal, legal and strategic information about the seller. All of these checks are called due diligence. The data room (or data room) is a virtual space where all the documents necessary for a due diligence project are gathered. The virtual data room offers great transparency: By providing confidential information to customers, the seller creates a climate of trust. He claims through the data room to have nothing to hide. This proof of transparency is often highly appreciated by customers; it can influence their purchase decision. Optimal management and strong trace-ability: An internet connection and a secure password are enough to access the virtual data room. The seller can enter at any time and from anywhere. Thus, he can respond quickly to investor questions. This easy access requires time and space savings, as well as better data control. Thanks to the trace-ability tool, he knows when investors have logged in and which documents have been consulted, which can give him valuable information about their interests. Next article – Choosing a best POS (Point of Sale) software Leave a Comment Cancel replyCommentName Email Website Notify me of follow-up comments by email. Notify me of new posts by email.