Virtual Data Rooms (VDRs) are now a fairly well-established practice in business transactions. Also known as a Deal Room, a VDR is a secure online portal used to share confidential files.
Historically, a physical data room would be set up at the seller’s business office, or their advisor’s office, so the buyer’s agents could review documents for Due Diligence. Today, Virtual Data Rooms serve a similar purpose using secure internet protocols.
In addition to the logistical advantages of digital access, VDRs have the added benefit of activity tracking. Administrators can see who entered the room, when, for how long, and which documents they accessed.
Audit tools like these help detect and deter unauthorized file-sharing or other misuses. Moreover, they provide a level of accountability in task management and deal timelines.
Here at Delta Business Advisors, we use Deal Relations.