How to Set Up a Virtual Information Room

In the wake of a number of major breaches of information, companies have been forced to share confidential documents securely with external parties. A virtual information room (VDR) that allows users to access documents from any device that connects to the internet it facilitates various types of document sharing and due-diligence practices. These rooms can be used to serve a variety of functions and are commonly used in M&A deals, venture capital financing, and other transactions that require extensive document sharing and analysis.

To create an VDR you must first locate an established service provider that provides a transparent pricing system and support for customers. Then, transfer the existing data to the platform. Make sure that documents are properly indexed and organized to make it easy to find them. Also, ensure that user permissions are established according to roles and the responsibilities. And lastly, train your team to make use of the VDR. This includes ensuring that your team understands the security protocols and best practices for document management within the platform.

VDRs are particularly helpful to manage intellectual property, including trademarks, patents, and research data. They are designed to prevent IP theft and guard this information from misuse by implementing features such as watermarking, selective dissemination, document expiry and download restriction.

During an M&A process it is normal to find a substantial amount of confidential information to be transferred between the buying and selling company. This information can include financial documents and records of legal nature, as well as information about employees. A VDR helps to organize this data and allows both sides to conduct due diligence swiftly and efficiently.

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