Companies in a variety of industries use vdrs for various reasons. They are typically used in M&A transactions, as well as to protect intellectual property. Auditors, legal counsel, and other external parties may use them as well. Some companies also use them to share information with their employees.
Many companies are required to share sensitive information with third parties, without the need to risk documents that are confidential falling into the wrong hands. Companies that have valuable intellectual property or proprietary data, such as biotech firms and pharma companies, might need to share formulations, molecules and other patents with regulators or outside labs during clinical trials. In these cases it is essential to have a vdr equipped with advanced encryption and granular settings for permissions can be a powerful tool to protect information.
Accounting firms regularly look over financial statements of a company including balance sheets and retained earnings, cash flow and income statements. These documents often contain sensitive information that could be harmful to a competitor. VDRs allow accounting teams to work together instantly, while maintaining the privacy of their employees.
Finally, private equity firms and funds regularly submit quarterly and monthly reports for their investors to go through. These documents can be quite large, and require a high degree of organization in order to be viewed quickly. A vdr will provide the tools necessary to organize these massive documents in a simple way for everyone. Access around the clock and intuitive interfaces make sure that this crucial reporting task can be accomplished quickly and efficiently.