A virtual data room is an application that lets companies share confidential documents with third parties without risking leaks. The platform comes with a variety of security options, including granular document viewing as well as downloading and printing permissions, multi factor authentication, time and IP access restrictions, and customizable watermarks. It also allows administrators to keep track of document activity, make groups and invite users to join in large numbers. Certain VDRs provide support in several languages and a variety of contact channels to meet the requirements of various businesses.

The platform can be used for a variety of purposes such as accounting, litigation and immovable property due diligence. It can also be beneficial in address mergers and acquisitions since it can improve the transparency of a deal and reduce the number of meetings required to conduct due diligence. It also can help avoid costly errors during M&A like identifying unanticipated expenses or regulatory penalties.

It is crucial to be aware of the features and capabilities each VDR solution has to offer to ensure that it meets your business needs. For example, some solutions depend on per-page or storage-based pricing policies which can be costly for large projects. Other solutions provide a custom enterprise experience with unlimited administrators and a large storage capacity.

Modern VDR offers a user-friendly and intuitive interface that is complemented by advanced collaboration tools. Mobile apps let users view documents, annotate them, and edit them while on the move. They can also search across platforms and devices. Administrators can also keep track of downloads, views, and edits by each user as well as the date of their actions.