By financen | July 1, 2017 - 5:41 am - Posted in VDR

What are virtual data rooms?

Virtual data room (VDR) is an online information which is used for fast distribution of documents. VDR is very secure and it is commonly used in the facilitation of due diligence process in loan syndication, transaction of venture capital and M&A transactions. The use of VDR has made it possible for documents to be stored safely in an electronic format on a central server when they can be retrieved easily by authorized person when need be. It is the place where bidders and their advisers are provided with unlimited internet access. It is actually a type of website with limited controlled access which is done using secure log on that is usually supplied by the vendor and can be terminated anytime if the suppliers wishes so. They are efficient, reliable, highly secure and cost effective. That’s the main reason why VDRs are fast replacing physical data rooms. Many organizations are now using virtual data room in corporate training. Below are ways in which VRDs are used in corporate training.

How virtual data rooms are used in corporate training 

1. Due diligence training 

Due diligence is the act of investigating information that relates to a business or an individual. This process can be done on a voluntary basis like when conducting future employees background check or it can also be legal requirement for a business like during corporate takeover bid. In such scenario, a potential acquirer will first evaluate the targeted business and its assets before making any offer. VDR is used to train corporates on how to accurately conduct due diligence. For instance, in the case of due diligence for M&A where buyers and seller connect with each other to complete a transaction, VDR training helps corporates to learn how to share confidential information to ensure that the interest of each member involved is protected.

2. High profile training 

One main feature that has made the VDR very popular is excellent security features. Virtual data room use advance security protocols that ensures that confidential files, corporate data and other intellectual properties is only shared between authorized persons. Virtual data rooms are secure meeting rooms where high profile training can be done. From time to time, organization usually conduct high profile training to high ranking staff to equip them will crucial skills that will help drive the agenda of the organization forward. This training needs to be done in highly confidential and secure meeting room. VDR offers perfect platform where high profile training can be done.

3. Document review training

Negotiating contracts and managing mergers is not an easy process. The process is more complicated if there are so many documents that need to be reviewed during the bidding process. One of the main reasons why traditional data rooms are being replaced by VDR is because of inconvenient access to documents. VDRs are efficient alternatives that helps to eliminate the tedious process of document review. However, for proper and efficient document review, training is crucial. It gives corporates vital skills on what they need to do to ensure that important and highly secure files are well stored for easy retrieval when they need to be reviewed.

4. Multiple deals training 

Many virtual data rooms offer unlimited use subscription to run multiple deals. This is important because it means that wide range of documents sharing process can be managed easily online including insolvency, sharing of litigation files, licensing agreements, M&A transactions, bidding and procurement deals among many others. Many organizations including top investments banks and law firms have now acquired their own virtual data rooms to get multiple deals done easily with less risk. However this can only be possible if correct training on how to conduct multiple deals is done to empower corporates. As a result VDRs are widely used in training to empower corporates on how to successfully conduct multiple deals.

In conclusion is it clear that virtual data rooms are much more efficient alternative, especially when it comes to eliminating the time consuming traveling process that is usually associated with physical data rooms. They are also convenient, flexible and highly secure in protecting highly sensitive and confidential information. The ever increasing popularity has made VDRs to be used in cooperate training as discussed above.

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