The Benefits of Virtual Data Review

VDRs are most commonly used to facilitate M&A processes, but can also be useful for other business activities involving confidential information. For example, venture capitalists often rely on VDRs when reviewing company documents in connection with investing and funding processes. Virtual data review is also a good fit for investment banking processes, such as capital raising and IPOs.

A VDR allows for multiple bidders conduct due diligence at the same time, which is much faster than an actual meeting. The ability to reach a larger audience of potential buyers will increase the likelihood of a deal being finalized faster than if it were conducted with only a few investors.

A VDR also eliminates the time-consuming and expensive photocopying. VDRs can be accessed from anywhere, which reduces travel costs. VDR vendors like Ellington boast lower upfront costs, and the ability to use the VDR by all bidders simultaneously.

Security is important for any technology system. Look for a platform with fence-view to avoid unwanted glances. It should also have multi-factor authentication and IP-restricted access. Make sure that the solution adheres to SAS 70 and encrypts PDF files. Check if the vendor offers a variety project templates and customizable branding.

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