A virtual data room is a secure online info storage facility for storing and distributing info. VDRs are used when strict info confidentiality is required, with the possibility of their distribution to a wide circle of users.
VDRs have many advantages over physical info rooms. Benefits such as 24/7 availability of info from any device anywhere in the world, info management security and cost-effectiveness. VDRs are used in many fields of this life such as biotechnology, information technology and telecommunications, investment banking, accounting, government, business brokerage, IT sphere, high education, sport, logistic industry, management, beauty sphere.
The process of mergers and acquisitions can be used as an example of application. About 40,000 mergers and acquisitions take place worldwide each year. During such an agreement, new potential investors should be able to see the financial records of the company that is the subject of the business agreement. However, the company name or other references should be kept confidential to avoid speculation. Investment banks usually facilitate this type of transaction by helping companies draw up agreements, properly organizing documents, and inviting potential investors who may be interested. VDR solutions are only used to share and collaborate on financial documents. The contract itself is concluded, signed and concluded outside of the VDR.
Why Use a VDR?
For all Internet users, virtual data rooms have become the norm as soon as they change offices or physical media. Physical info rooms and physical media had limitations and were time consuming and inconvenient for stakeholders. With the development of the Internet, the physical info and media space is an outdated concept. The following are the most common uses of VDRs:
- internal document storage;
- communications shield;
- secure exchange of documents;
- mergers or acquisitions;
- fundraising;
- initial public offering of shares;
- strategic partnership;
- audit;
- increase in venture capital;
- intellectual property managers.
Main Product Users and Basic Process Settings
In order to properly formulate our virtual space requirements, we need to identify the key users of the product and the main workflow. The key people involved in the process of processing corporate documents can be:
- finance director of a private company;
- financial analyst;
- end user who needs to view documents.
The main workflow looks like this:
- Creating a info room.
- Download and structure documents from private companies most efficiently adding new users to the info room;
- Providing access to specific documents to specific users.
- Start the info cabinet. All users should have access at the same time to avoid misunderstandings.
- Monitoring user activities: who is most active and interested and who has not viewed documents, etc.
- Exit and close the info room. The process setup for users looks like this:
- Create a info office -> CFO of a private company
- Download and structure documents from private companies most efficiently -> Private company CFO, financial analyst
- Add new potential users to the info room -> private company CFO, financial analyst
- Providing access to specific documents for specific potential users -> CFO of a private company, financial analyst
- Start the info cabinet. All potential users should have access at the same time to avoid misunderstandings -> Finance Analyst
- Being able to control users’ activities: who is most active and interested; who has not reviewed any document, etc. -> CFO of a private company, financial analyst
- View hierarchy of documents, preview, download available files -> CFO of a private company, financial analyst, end user who needs to view documents
- View allowed documents since last login -> End user who needs to view documents
- Exit and close the inforoom -> Finance Analyst.