A virtual data room (VDR) is a secure platform that accommodates almost all industries, business fields, or use cases. Its use with granular documents is no exception. While providing safe storage and sharing of sensitive documents, a VDR also allows administrators to manage access to specific documents.
Why Use VDR for Granular Documents
Virtual Deal Rooms offer granular security features. This feature allows administrators to grant different users varying levels of access to the site’s various sections. Accountants can have access to financial documents only, while lawyers of the same team get access to legal documents only.
With granular access, owners have complete control over who can view what, ensuring the security of private information. Using a VDR can also help to:
- Keep an eye on how much time users spend browsing a data room.
- Limit users’ ability to take screenshots, print, download, or copy documents. With this ability, owners can prevent company information from leaking to rivals or other unintended parties.
- Offer hassle-free and secure platforms to users. Users won’t require a particular installation or specialized program for the security to function anywhere, whether in an office or remote location.
- Reduce human errors. People make mistakes like emailing an incorrect recipient. Using a data room gives greater control over security, reducing the risk of errors.
Where To Use VDR Granular Access
Many industries use data rooms to replace the traditional physical data room. They are more popular with companies that need to store and share sensitive data. The following are common VDR use cases because of the granular access capabilities:
Mergers and Acquisition
Investment banks and organizations use VDRs to expedite due diligence and move merger and acquisition agreements. The enormous amounts of information and research needed for M&A due diligence may be stored and shared easily using VDRs.
Organizations involved in M&A can permit secure access to specific data needed by particular individuals during the process. If a contract fails to go through, they can immediately stop access to the data room. Companies won’t have to worry about copies floating around as they can control all access and copy acquisition forms.
Capital Raising/ Fundraising
Convincing investors to part with their money involves lots of information and documentation for due diligence. Potential investors need to be aware of the risks and benefits of their investment choice. A virtual deal room with granular security features can speed up this process while maintaining data security.
Using a VDR, an organization can select specific documents to disclose to prospective investors. They can also handle more investors at once, giving access to each based on the deal’s progress. Sharing private information with a VDR gives leadership more control and assurance.
Initial Public Offering (IPO)
Companies that choose to go public are subject to intensive scrutiny. Potential shareholders seek transparency and compliance at the highest levels. VDRs are perfect for handling all the documentation procedures, giving granular access to documents at each stage.
Without formal mergers and acquisitions, companies could still work together to launch a brand-new firm or extend their line of products or services. A VDR may prove invaluable for the safe exchange and safeguarding of relevant information. A company may limit certain information to specific departments for easy and secure access.
An external audit of a company’s data may sometimes be necessary. The leadership team will need to secure separate access for accountants, lawyers, and auditors to sensitive corporate data. With a VDR, businesses can share these documents securely with each party without security risks.
Intellectual Property (IP) Management
Start-ups rely on establishing a data security plan that protects priceless intellectual property for their existence. Businesses can store all IP-related documents in a VDR and access them as needed with the utmost confidence.
Board members may not be able to access the office all the time but still, need access to classified information. Making sure that document sharing is fast and secure can become a challenge. Business intelligence in a virtual data room lets you control who has access and when.
Which Virtual Data Room Is The Best?
The ideal data room removes concerns about inappropriate sharing and stealing of information. Find a virtual data room with solid security features that makes granular document access faster and more straightforward.