A virtual deal room is essentially a virtual data room as well, also known as VDRs. However, as the name suggests, this particular kind of data room concerns itself with corporate deals such as mergers and acquisitions specifically. Virtual deal rooms are ideal repositories for storing and sharing confidential documents with minimum risk. Therefore, they are utilized quite extensively by lawyers involved in the business, executives at investment banking firms or merger and acquisition firms, and even one-time parties to a deal taking place between two or more companies.
In case any of that applies to you, or if you are in any other position where you stand to benefit from the security, affordability and privacy which only a dedicated deal room can provide, read on as we discuss how the advantages apply here.
Security Above All Else
Cost-effectiveness is an advantage with virtual deal rooms as well, but we will discuss that part later. The most important feature that any data room in general – and deal rooms in particular – must offer is security. Your virtual deal room provider must have the following security requirements taken care of, so that the shared content and information is not allowed to leave the room:
- Granular permissions: Ability to allow/deny access to specific folders, subfolders and documents
- Dynamic watermarking: Particulars of the owner and timestamps should appear instantly on all shared documents
- Signing a No Disclosure Agreement (NDA) should be mandatory for everyone present in the room
- The host of the VDR should be able to make legally valid changes to the NDA beforehand
- The host should also be able to download the data room for future reference
Cost-Effectiveness and Convenience are the Main Reasons Why VDRs are Used in the First Place
Security should be the first concern while choosing a provider, but affordability is one of the main reasons why VDRs are used in the first place. The cost benefits of virtual deal rooms in comparison to physical deal rooms are almost identical to the ones enjoyed by an online retailer over an offline retailer. Physical space requires more money to maintain and secure, while virtual space is a comparatively low-cost and low-maintenance proposition.
Read also: Do Business Needs a Virtual Data Room?
Editing Within the Deal Room
One of the major benefits of a deal room is that you can make edits to documents and contracts within the security of the deal room itself. Instead of having to download files and worrying about whether or not they will be hacked from your hard drive, you can rest assured that everything is under lockdown and that you won’t have to worry about the loss of important information. It can also serve as a way to collaborate with those that you can’t meet in person by giving them access to your deal room. Of course, it will be heavily encrypted so you don’t have to worry about any security issues if you do choose to give them permission.
In summary
A virtual deal room can be a valuable resource for those who conduct business online or who might be looking to add additional security measures to their company. When you are looking for a safe place to store important items, then you might want to consider one for your purposes.
Images credit: istockphoto.com
