A virtual dataroom is a cloud storage solution that supports business operations and collaboration. It gives users easy-to-use tools for share documents and other information between colleagues, clients and partners. It is accessible from any web browser with an internet connection. Users must complete an authorization and authenticating procedure before being able to access the data. The VDR allows real-time collaboration between team members. This allows the sharing of important documents in a short period of time. The system can store huge amounts data on a small space, and is typically secured with an SSL Certificate.

Investment banks use this software to conduct due diligence and to present their goals to potential buyers. They also utilize it for post-transaction integration. Financial services companies can use it to share confidential files and provide advice to their clients. It simplifies M&A transactions and decreases the chance that sensitive data could end up in the wrong hands.

During due diligence the software helps to understand a business's financial standing. The powerful search function accelerates due diligence, and lowers the chance of missing or lost documents. Organising documents in clear folder structures makes navigation easier and lessens confusion. A robust Q&A tool allows both parties to communicate more effectively and work better together.

To ensure compliance It is imperative that a data room has the ability to set permissions that are granular, limiting access to documents and their usage. It should also include dynamic watermarks that are updated and an easy the hierarchy of access. The software should also support audit trails that track each document and every activity within the platform.