Virtual data rooms aren’t limited to a specific industry. Virtual data rooms are used whenever a company has to communicate confidential documents to outside parties. This could be an acquisition, merger IPO or any other business transaction that requires the exchange of sensitive information. In certain instances this information is required to fulfill regulatory requirements, such as the need to allow regulators and auditors to review the company’s records.

Virtual data rooms are used by many firms to streamline due diligence in M&A transactions. The digital rooms in advisory services due diligence process can involve a massive amount of documents that need to be viewed by several interested parties. Having the ability to easily browse and download the documents in a VDR allows the process to be completed faster and more cost effectively.

Other companies also use VDRs in other companies. VDR to facilitate sharing documents with clients, legal teams and third parties for reasons of regulatory or litigation. A law firm, for example, may need to access the records of clients and be able to do this in a secured environment to ensure that it does not violate privacy laws.

A VDR lets businesses automatize workflows, processes and approvals. This can help reduce time and effort that would be required to manually handle tasks such as signing an NDA, managing invoice approvals, or even submitting documents for upload to a data room. Additionally an VDR with advanced document processing capabilities will be able to search text in many types of files like PDFs and Excel documents.