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It’s better to keep legal documents behind the doors of VDR

Posted on by Confiex Team

Last updated on June 26th, 2023 at 10:19 am

Virtual Data Rooms

Virtual Data Rooms are an invaluable asset more particularly for the Merger & Acquisition process. Up until a few years back all legal documents pertaining to M&A were kept on pen and paper, which was a very tedious process. This has however changed with the advent of VDRs and law firms would be the first ones to acknowledge the utility of a good VDR in the storing and sharing of their business sensitive date safely and securely.

Before the advent of VDRs, law firms had to create physical data rooms to store all the relevant documents pertaining to a particular case. This led to a plethora of administrative issues like tabulating each and every document and filing them in chronological order of viewing. The biggest issue was that the client would have to be physically present at the law firm’s office to review and discuss those documents, which would entail travelling from within the city/country and even continents.

Physical data rooms and its problems.

Emailing was considered as a potential solution to prevent this problem of physical travelling, but it proved to be too cumbersome and insecure when dealing with multiple bidders during a M&A process. Additionally, once the bidders got those documents you could not control what he did with those documents. Thanks to cloud computing VDRs now offer a safe and viable alternative to actual physical data rooms and its problems.

One of the topmost positives of using a VDR is that it shows an audit trail of who has viewed what documents, how many times, for what time duration and with access control you can also restrict access to certain documents to certain people only if there is a need for that. This is particularly important during due diligence as it allows far greater accuracy and efficiency than before.The major strength of a VDR is its implied state-of-the art security. Several complex layers of security often work together to create an all-encompassing barrier against potential risks and threats.

VDR servers are kept behind closed doors and monitored by surveillance or trained security personnel 24×7, 365 days so the physical protection of data is not an issue. These servers are also equipped with multi-factor authentication, back-up power source, top notch fire wall systems, virus scanning software and accident redemption. The data uploaded is encrypted with the highest commercial-level encryption as well as mandatory watermarking upon printing. VDRs take every measure to ensure that your data is absolutely safe and secure.

VDRs also offer ease of use and accessibility as they are well organized. Besides they grant access to multiple parties at the same time from anywhere in the world, while maintaining complete privacy. They are accessible even on mobiles so that you can access data even when you are on the move. Precise searching functionality lets you easily access the particular document you want to review any time of the day, even between different time horizons.

Moreover, the best part about a VDR is that its room structure can be customized to suit your needs.

The organizational features of a VDR places them miles ahead of physical data rooms and justifies their success in modern day business.

 

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Confiex Team

The Confiex team specializes in providing premium virtual data room solutions tailored for businesses. With their vast experience in working with document sharing platforms, they have been actively supporting the Virtual Data Room community since 2015 by offering valuable information to users free of charge.

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About Confiex Data Room

Confiex Data Room is a trusted provider of premium virtual data rooms with over 5 years of on-ground experience and more than 11 years of industry experience. Headquartered in the financial capital of India, we have a strong partner network in the US and the UAE. Our global customer base spans across 100 countries, and we have successfully facilitated over 900 M&A deals, 100 IPO deals, and 90 NCLT deals. We are committed to providing users with valuable information on document security and Virtual Data Room (VDR) solutions. Discover more about Confiex Data Room.

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