Virtual data rooms (VDRs) are commonly used during the M&A processes to manage the complex due diligence process by giving parties to view crucial documents of the business in a safe environment. All the data is stored all in one place, ensuring participants can concentrate on the important issues and save time.

A VDR allows you to share documents that can be printed or downloaded, and then annotated. The annotations are usually only able to be seen by the person who made them. This is beneficial when working with highly-confidential documents.

Additionally to that, VDRs can also help in reducing the time spent on acquiring documents. VDR can also help to streamline the lengthy M&A process by allowing potential buyers to access documents online and remotely, instead of needing to fly in from overseas and be present for the entire due diligence session. This makes the entire process more efficient.

Utilizing a virtual data room also helps to reduce the expense of running a physical data room. In the event of having to pay for an actual space, security and catering can be expensive, particularly when dealing with large M&A transactions that require high-level buyers and experts to attend.

A VDR is an excellent place to store documents that you require for a fundraising or equity event, such as pitch decks or financial projections. It's better than using free file sharing tools that do not have the same level of security as well as auditing capabilities and watermarking features.