As more and more businesses have moved their operations virtually, there is a more of a pressing need for safety and security. Because deals rarely conclude with a handshake anymore, companies need a better way to make deals. While companies can certainly correspond over platforms like Slack and email, the lack of security features make it an unviable option for any advanced deal making beyond general correspondence. Because of this, more and more companies have turned to secure virtual solution to make deals and transact with each other.
This is where the virtual deal room comes in. Simply put, a virtual deal room is a virtual storage space that allows companies to upload documents, conduct mergers and acquisitions, conduct due diligence, raise funds, and more. Unlike a traditional cloud storage solution such as Dropbox, a deal room is housed on an extranet and can only be accessed by those who know where to find this. This makes it virtually impervious to hackers and corporate espionage, as they would have no way to find out about the existence of the data room in the first place. As such, it is a particularly great solution for companies that want to be discreet with sensitive information such as financials.
Furthermore, a virtual deal room allows you to streamline document-heavy transactions. If two parties are negotiating a deal, for example, lawyers from both sides can access contracts that are housed within the virtual deal room, and make modifications requests directly in the documents themselves. Due to advanced access control features, virtual data rooms can block out ordinary employees from certain documents, or even particular parts of these documents. This helps, for example, make sure that a marketing employees steers clear of financial records, or an accounting employee steers clears of legal documents that are currently in negotiation.
Beyond these clear use cases, a virtual deal room can also expediate the deal making process and help both companies invested in a deal save both time and money. With a virtual deal room, you can customize the dashboard so that you can watch user activity and gauge interest from buyers and investors, and make smart assumptions based off that data. You can also ask questions directly in the deal room with the Q&A feature, meaning that you don’t have to implement a supplement messaging platform to get the process moving.
While business has become more digital, the human aspect of business has not. Using a virtual deal room allows deals to be personal and intimate. While parties may no longer be directly shaking hands, they can do so virtually through the use of an intuitive software solution that caters to deal making, mergers and acquisitions, fundraising, and more. In implementing a virtual deal room as a part a company’s arsenal, they will make the overall deal less complicated and more straightforward, and easily be able to solve problems such as access control, e-signing, customizable user roles, and archiving of critical documents for later review.