Companies across a variety of industries employ vdrs to serve a variety of reasons. They are used in M&A deals as well as to protect intellectual property. Auditors, legal counsel and other external parties can also utilize them. Some companies also use them to share information with their own employees.
Many companies need to share sensitive information with third parties without having to put confidential information at risk of falling into the wrong hands. This can include companies with extremely valuable intellectual property and confidential data like biotech and pharma companies who share formulations, molecules, and patents with outside labs and regulators during clinical trials. In these situations the use of a vdr with advanced encryption and specific permission settings is an extremely useful tool to ensure your data secure.
Accounting firms also scrutinize financial documents, including balance sheets, retained earnings and cash flow statements. These documents are often containing sensitive information that could be harmful when shared with a competitor. VDRs allow accounting teams to work together instantly while keeping their the privacy of the data.
Finally, private equity firms and funds frequently upload quarterly and monthly reports to their investors to read. These documents are often quite large and require a lot of organization in order to review them in the time frame required. A vdr can provide the tools required to organize large files in a way that’s easily navigable for all parties. Access to the internet 24/7 and user-friendly interfaces ensure that this vital reporting function can be carried out efficiently and quickly.