Data room is space for storing data which are of a secure or privileged nature. Companies dealing with corporate restructuring, performing mergers and acquisitions, fundraising, insolvency as well as joint ventures which include biotechnology and tender processes 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 purposes such as data storage, document 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 business with other large company which involves contracts as well as transmission of important data. The Virtual Data Room provides the necessary confidentiality as well as a safe and secure platform for review 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 require the creation, exchanges, managing as well retain large amounts of documents. It involves a daunting amount of paperwork. Moreover, such companies require a frequent audit which requires the utmost transparency in their dealings. As such, workers from different parts of the globe will need to interact. Virtual Data Room makes such inconvenience into 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 room. It provides a portal for transparent communication and access to data and information.