Virtual data room

A virtual data room (sometimes called a VDR) is a web based repository of information that is employed for the storing and distribution of documents. Most of the time, a digital data room can be used to facilitate the due homework process during an M&A transaction, loan syndication, or private equity and capital raising transactions. This due persistance process has traditionally used an actual data room to accomplish the disclosure of documents. For reasons of cost, efficiency and security, virtual data rooms have widely replaced the more traditional physical data room.

A virtual data room is an extranet to which the customers and the advisers are given access using the web. A great extranet is essentially a site with limited manipulated gain access to, by using a secure log-on given by the vendor, which is often disabled without notice, by the vendor, if a prospective buyer withdraws. Much of the information released is private and restrictions are applied to the viewer's capability to release this to third parties (by means of forwarding, copying or printing). This can be effectively applied to protect the data using digital rights management.

Along the way of mergers and acquisitions the data room is established up within the central archive of data associated with companies or divisions being attained or sold. The information room permits the interested get-togethers to view information associated with the business in a handled environment where confidentiality can be preserved. Conventionally this was attained by developing a supervised, physical data room in secure building with manipulated access. In most cases, with a physical data room, only one bidder team can access the room at any given time. A virtual data room is designed to have the same advantages as a conventional data room (controlling access, viewing, get you marked down and printing, etc. ) with fewer disadvantages. Credited to their increased efficiency, many businesses and sectors have moved to using virtual data rooms rather than physical data rooms. In 2006, a spokesperson for a company which packages up virtual deal rooms was reported claiming that the process reduced the bidding process by about thirty days when compared to physical data rooms.