The cloud-based data room can help you provide your customers with the best service and transparent management, bring more deals to success, and keep data in a secure repository. So, what are the most common cases of using data rooms?
What is the role of the data room in business?
Companies used to store their customer base in bulky Excel spreadsheets. Today, the online data room system makes it possible to create an electronic card for each consumer, where there is information about contacts and the history of interaction. In addition, working in the database is more convenient, faster, and more efficient than using another method. With a few clicks, you can set a meeting reminder, find out everything about the deal, and send an invoice for payment.
Virtual data room (VDR) is the development of a personalized offer to a specific client, which is offered to him at a particularly favorable time for the transaction and transmitted to him by the most convenient channel for his communication. The data room provides coordination of actions of various divisions based on the general information platform for interaction with clients. This application avoids the situation when the marketing, sales, and service departments act separately to coordinate their actions and the client’s overall vision. In addition, like any other information system, a data room can significantly speed up the flow of information and make it reliable, increasing the efficiency of response to requests, speed of turnover, and reducing costs.
The most famous use cases for virtual data rooms
Digital data rooms are becoming increasingly popular because it is a universal tool for modern business. So, this software solution is suitable for managing deals in the following sectors:
- Mergers and Acquisitions
In recent years, the number of mergers and acquisitions has increased massively. Due diligence is the basis of every transaction between companies. The pandemic has further accelerated the shift from in-person deals to online transactions. VDR is a secure space where contractors can review the business model and financial portfolios.
- Raising Capital
Data rooms are perfect solutions for companies that need to raise capital. In wooing investors, they then have to share sensitive financial and business records with various outside parties for weeks or even months. VDRs make it easy for users to search through large amounts of data and find the files they want. In addition, some solutions have built-in specialized information that companies can use to engage and engage investors.
- Audits and Compliance
Whether part of a routine audit or responding to a regulatory investigation, virtual data rooms can be used to collate relevant financial information and company reports. You can assign permissions to external auditors and third parties as needed.
- Real estate
Commercial real estate transactions are complex. Buyers, lenders, and financial institutions need quick, easy access to financial data, plans, and property information. Traditional tools like email or online file sharing may have file size limitations. VDRs, on the other hand, allows multiple parties to access and collaborate on these large files. The ability to change and revoke permissions is essential to process progress.
- Legal Terms
Complex transactions and litigation often require sharing proprietary information between the legal department, outside law firms, and third parties. As a result, dynamic legal matters cannot be managed without constant access to current documents and court records. Virtual data rooms secure this data in the online version of a steel-reinforced safe room – with only one entrance and exit. In addition, persons joining the class action lawsuit can quickly be added to the data room.