Mergers importance of data governance and Acquisitions are common in the business world. They allow businesses to expand their reach into new markets or increase their production capacity and diversify their product lines, or even launch new ventures. However, these types of strategic investments require the exchange of a large amount of confidential documents that require bank-grade security to ensure that personal information isn’t vulnerable to cyber attacks and data breaches, as well as other problems that could disrupt the deal or leave your company vulnerable. VDRs allow companies to securely share files and documents with interested parties, without the danger of a breach or exposure.

VDRs also help businesses save time and money during due diligence. Virtual data rooms allow interested parties to share documents and look over them without waiting for buyers to show up at the office of the company, or to submit requests. This can result in significant reduction over the traditional method of sending physical documents to potential buyers to review and evaluate.

Additionally, the most effective virtual data rooms come with features that accelerate and simplify the M&A process. A good VDR for instance, will have a logical indexing system that makes it easier for buyers to find documents and can reduce the time spent searching for and retrieving documents. It should also offer the ability to e-sign documents, which will make the contract signing process considerably more efficient and reduce the necessity to send drafts back and forth or use third-party e-Signature services that introduce additional security risks.