Data room is space for saving data which are of a secure or privileged nature. Companies dealing with corporate restructuring, doing mergers and acquisitions, fundraising, bankruptcy as well as joint ventures including biotechnology and tender procedures make use of such a room. It comprises of a physical data room and a virtual data room or data centers.
The traditional room comprised of a physical room or space for data storage as well as distribution. On the other hand, the Virtual Data Room (VDR) is an online repository that deals with the same functions as that of a data room. Such rooms are used for different functions such as data storage, record exchange as well as file sharing, legal transactions, financial transactions and the like.
Big business and companies comprise of large amounts of documents which contain sensitive information and are confidential. Such companies form a company with other large company which entails contracts as well as transmission of important data. The virtual data room stipulates the necessary confidentiality as well as a safe and secure platform for both inspection and exchange of data as well as negotiations between companies. It enables the storage of data and readily provides such data when needed.
Companies such as private equity, investment banking, accounting, and legal relations demand the creation, exchanges, managing as well retain large amounts of documents. It involves a daunting amount of paperwork. Moreover, such companies require a regular audit which requires the utmost transparency in their dealings. As such, employees from various parts of the world will have to interact. Virtual Dataroom makes such annoyance to a better and easy platform for interaction between companies. Attorneys, accountants, internal as well as external regulators and various other concerned parties can have core access to information with the help of a data space. It provides a portal site for transparent communication and access to data and information.