In the course of a transaction seller must ensure that the right document was presented and that due diligence was carried out. This is where VDR’s built-in tools for tagging and versioning can help. These tools let buyers ensure that they have reviewed the correct version of a file and help keep deals on track with transparent audits.

When companies are preparing for an IPO or commercial product launch, they may have to share sensitive data with external parties. A VDR is the most secure method for stakeholders to view and collaborate on these files without fear of leaks of information. The best VDR providers provide watermarking along with 256-bit encryption and multifactor authentication and baked-in infrastructure security. They also provide invitation delay, customizable viewing rights and automatic indexing.

Mergers and acquisitions (M&A) are frequent use scenarios for the use of a VDR and involve sharing large amounts of confidential information with potential buyers. Using VDRs VDR makes this process more efficient and easier for both sides to manage, as well as helping protect confidential information in the event that the deal doesn’t succeed.

Selling a business is often complex and requires the presentation of an Information Memorandum, financial model and other important documents to potential buyers. A VDR allows the seller to securely share these documents with potential buyers, who sign a non-disclosure agreement before examining them. This streamlines the process by reducing the number of meetings and paperwork. It also reduces costs by eliminating travel and other expenses.