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The Benefits of Virtual Data Review

VDRs are most commonly used to facilitate M&A processes, but can also be useful for other business activities involving confidential information. For example, venture capitalists often rely on VDRs when reviewing company documents in connection with investing and funding processes. Virtual data review is a great tool for investment banking processes that require a large amount of documentation.

A VDR allows for multiple bidders conduct due diligence at the same time, which is much faster than an actual meeting. A wider pool of buyers can be found, increasing the likelihood that the deal will be completed sooner than if only a small group of investors were involved.

In addition, a VDR eliminates the cost of photocopying and indexing, which can be time-consuming. VDRs can be accessed from anywhere, which reduces travel costs. VDR vendors like Ellington boast lower upfront costs, and the ability to use the VDR by all bidders simultaneously.

Security is important for any technology system. Look for a platform with fence-view to avoid unwanted glances. It should also have multi-factor authentication and IP-restricted access. Make sure the solution is SAS 70-compliant and that data in PDF files are encrypted. Finally, check whether the vendor provides a variety of project templates and customizable branding options.

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