A virtual
data room is an online storehouse of information. In other words, it is used
for the storing and distribution of information. In many cases, a virtual data
room is used to facilitate the due diligence process during an M&A
transaction, loan syndication, or private equity and venture capital
transactions. This due diligence process has traditionally used a physical data
room to accomplish the disclosure of documents. For reasons of cost, efficiency
and security, virtual data rooms have widely replaced the more traditional
physical data room.
Advantages
of virtual data rooms
1. Increased
speed of transactions
2. Information
cannot be downloaded and taken away in a true Virtual Data Room - only viewed
by a user with the correct permissions
3. Enhanced
information secures more deals at higher prices
Adopted from wikipedia
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