Online data room review is an essential step for businesses trying to streamline critical due diligence, M&A, and other sensitive transaction processes. Each VDR vendor offers unique features that are specific to different kinds of projects and industries. Some focus on security, others place a premium on collaboration and analytics. Some offer different pricing plans for long-term or short-term projects.

Investment banks and private equity companies use VDRs to manage the process of evaluating potential targets and investing in mergers and acquisitions. They need secure, high-speed storage of documents and access as well as the ability to provide information to prospective buyers while maintaining confidentiality. VDRs also enable a more efficient Q&A process which can save investment bankers up to 3-4 hours per day with simple and user-friendly tools to share, track, and managing questions and answers.

Law firms and legal service providers use online data rooms to facilitate a variety of procedures, including funding, M&A transactions, corporate finance, insolvency, licensing agreements joint ventures, litigation and other business issues. They need a platform that enables remote, secure access to a large number of confidential documents for their clients and other stakeholders, which is difficult with physical documents. A virtual dataroom could help lawyers and legal staff adhere to the requirements of regulatory agencies and improve transparency in communication.

Manufacturing deals are often huge-dollar contracts or projects that require strict supervision and confidentiality of sensitive documents. Virtual data rooms allow the sell-side to upload all of the documents for buyers to examine without needing to go to the physical location, which reduces costs and increases the risk that the deal may be terminated. Additionally, a VDR with advanced features like redaction and fence view can ensure that personally-identifiable information stays private and prevents screenshotting.