A virtual dataroom (VDR) provides a safe storage space for files and allows you to share them with external collaborators. It’s typically used to share documents for projects that require privacy, security, and collaboration. VDRs are beneficial for projects such as mergers and acquisitions (M&A) due diligence, real estate transactions and court proceedings.

As part of due diligence, buyers in mergers and acquisitions have to be able to access confidential documents. A VDR lets them review documents from any location without having to go to the office of the seller.

The price of a VDR is subject to change. Some have opaque pricing models, where you have to speak with a sales rep to get the exact cost of the project. Other providers operate with more transparent pricing structures and charge either a monthly or annual cost for each user. This includes both internal users such as your employees, as well as external collaborators such as lawyers and investment bankers.

When choosing a VDR Choose one with a high uptime and customer assistance available 24 hours a day. Also, ensure that their servers are hosted in a world-class data center with multiple levels of redundancy. This ensures that your data is safe and accessible. A VDR that comes with a robust set of collaboration tools can ensure that your project runs smoothly. This includes Q&A sections, annotations on documents, as well the capability to assign tasks. This will increase productivity and reduce processing delays.