In the digital age businesses are often required to share critical business information with third-party organizations. These include accountants, lawyers and compliance auditors as well as trusted advisors. A virtual data audit is a reliable and safe method to accomplish this, without risking your company being exposed to a breach of compliance.
VDRs are designed to simplify due diligence processes and enable collaboration between stakeholders in a variety of industries that require detailed documentation management. Legal and financial services as well as private equity and real estate are a few industries which use VDRs. They are accessible 24/7 unlike physical documents that can only be accessed in the office.
Many VDR providers offer professional support via phone, email and chat in-app. The support team is typically multilingual and has training videos. VDRs are more cost-effective than physical data rooms due to the combination of these features.
However, some industry experts caution against over-reliance on the virtual review of data. For instance the absence of human interaction could cause miscommunication and errors during the process.
Some lawyers still prefer to read documents printed. They argue that it’s easier to make mistakes when reviewing text on a screen for hours in a tight time frame. In addition, the costs caused by errors during review of physical documents can outweigh the upfront cost savings of a VDR.
A VDR can be used to handle all of your company’s document sharing requirements in a secure setting, whether you’re conducting an M&A, raising funds or preparing for litigation performing audits for leasing and sales of real estate transactions, or experimenting with new drugs. To learn more about the virtual data review feature check out our FAQ page.