Those who work in data security likely know what a virtual data room is. If not, the best way to define a virtual data room is simply as an online repository of information. This information often takes the form of confidential documents that are accessed by multiple parties. What makes a virtual data room different from cloud-based solutions like Dropbox or Google Docs is its enhanced security features. Because a virtual data room is housed on an extranet, and not on the internet itself, it cannot be accessed by anyone who does not have access to the private network where the virtual data room is located.
While a virtual data room can have many functions, from document security to easy document management, one underutilized aspect of virtual data rooms is for dealmaking. When used in manner, virtual data rooms are often referred to as virtual deal rooms. The purpose of using a virtual data room as a virtual deal room is that it can expedite the deal management process. With that in mind, here’s how a virtual data room can be transformed into a virtual deal room to make deals as efficiently as possible.
Permission-Based User Roles
One essential function of virtual data rooms is to create roles that are specific to certain employees or individuals. This is normally done for data security purposes, and allows companies to make sure that documents are only accessible or visible to certain parties on a need to know basis. When using a virtual data room as a virtual deal room, this can make sure that no extraneous parties have access to confidently communication or negotiations between the parties making a deal. This can also be done at the view-only level so that certain parties who do not have the legal authority to do so cannot make any accidental changes to documents.
Customizable NDAs
When starting the dealmaking process, it is essential that all parties sign an NDA. This means that they cannot disclose the terms of the deal. This is particularly important if the deal goes sideways or if some information comes out that one party would like not no see the light of day. Doing so makes sure that everyone is secure and that no liability can occur.
With a virtual deal room, you can set it so that all parties that enter the virtual deal room for the first time have to sign an NDA. This NDA can be customized to the specifications of the deal, and it will be required for any member of either party to sign before they access any information. Creating this as a part of a virtual deal room is essential to create a sense of confidentiality around the dealmaking and limit any sort of corporate leaks.
These are, of course, only some of the ways that a virtual data room can be used as a virtual deal room to make deals. Make sure to look closely at a virtual data room for making deals so that you can expediate the dealmaking process and make sure that all parties can sleep soundly due to the safety and security measures that using one will put in place.
