During a transaction seller must ensure that the proper document was provided and due diligence was performed. This is where a VDR’s built-in tags and versioning controls can be of assistance. These features allow buyers to verify that they’ve reviewed the correct version of a file, and can ensure that deals are on the right track with an audit that is clear.
Businesses may need to share sensitive information with other parties in preparation for a commercial launch or IPO. A VDR is the most secure way for these stakeholders to be free optimizing inventory management for reduced carrying costs of worries about leaks of information, to review and discuss files. The best VDR providers provide watermarking along with 256-bit encryption and multifactor authentication and built-in security features for infrastructure. They also provide invitation delay, customized viewing rights and automatic indexing.
Mergers and Acquisitions (M&A) which require sharing large amounts of confidential information with potential buyers are the most frequent applications for a VDR. This process can be made easier and more efficient for both parties using a VDR. It also helps protect private information in the event of a deal fails.
Selling an enterprise can be complicated and requires the presentation of a Financial Model, Information Memorandum and other important documents. A VDR allows a seller to securely share documents with potential buyers. Prospects can then sign a non-disclosure contract before going through the files. This simplifies the process by reducing meetings and paperwork. It also reduces costs by eliminating travel and other expenses.