While VDRs are often associated with M&A due diligence, they can also be used in every data sharing procedure that requires a business to share privileged information beyond its firewall. If it’s sharing intellectual property in preparation for an IPO or soliciting funds from limited partners, VDRs can help make any document sharing process simpler by improving communication and automating tasks.

Contrary to their predecessors which required companies to send physical documents to reviewers, virtual data rooms enable users to access and browse documentation on-demand. While reviewing process is more efficient, it also ensures that only authorized individuals can access confidential documents for business and eliminates the possibility of an incident of security or compliancy violation.

A VDR, for example, can track user activities in detail on each document in the room. This includes who accessed the document, and when. This feature can be useful list of leading free data rooms for security audits because it will show only a particular group of people viewed sensitive documents for business. It can be helpful in M&A due diligence as it provides more information about the degree of interest, and can help companies identify which documents are most appealing to bidders or investors.

When selecting the right VDR select one that has customizable reports and real-time analytics to provide administrators with the information they need. It should be easy to use on any device and offer seamless user experience for many users.