If you’re a business seeking to make important decisions like M&A transactions, tenders or capital raising, it’s vital that all the relevant information is accessible. This may mean searching through thousands or tens of thousands of sensitive documents that could be at risk of being hacked, data breaches and other security threats. However, there’s an answer that combines the ease of access with secure documents and collaboration tools. It’s called the virtual data room (VDR).

A VDR is business software that allows for the simple and secure sharing of information within due diligence procedures. It’s specifically designed to serve the M&A private equity, M&A, and investment advisory fields, but can be used by any business looking to complete an important deal or undertake a project. It’s a secure cloud repository that stores critical documentation including financial statements as well as identity management software legal agreements.

The most effective VDRs are those that have a clear folder structure, which makes it easy to navigate. They also have customizable security features which allow you to limit access to files by creating timeouts as well as auto-expiration. You can also restrict viewing, printing and downloading of documents, and generate reports on the activity of your documents.

VDRs are typically hosted in data centers of the highest quality that have physical security measures like offsite data backups, fire suppression and biometric access control. They also have global accessibility which allows prospective buyers and investors to examine important documents without needing to travel to your company’s headquarters or other locations.