Companies in a variety of industries utilize vdrs for a variety of purposes. They are frequently used in M&A transactions, as well as to protect intellectual property. They are also used by auditors, legal counsel and other external parties. Some companies use them to provide documents to their employees.
Many companies require sharing sensitive data with third parties, but they do not want to risk the possibility that confidential documents end up in the wrong hands. This includes companies that have high-value intellectual property as well as proprietary data such as biotech and pharmaceutical companies sharing formulations, molecules, and patents with outside labs and regulators during clinical trials. In these cases an vdr that has advanced encryption and specific permission settings is an essential tool to keep confidential data.
Accounting firms also review financial documents, including balance sheets, retained earnings and cash flow statements. These documents are often containing sensitive information that could be harmful to a competitor. VDRs allow accounting teams to work together instantly and maintain privacy.
Private equity funds and firms upload quarterly and month-to-month reports to their investors. These documents are often quite large and require a great deal of organization to be reviewed in an efficient manner. A vdr can provide the tools needed to manage these large documents in a simple manner for all parties. This vital reporting function is accomplished quickly and efficiently through the use of user-friendly interfaces and 24/7 access.
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