How Can Law Firms Benefit from Using Virtual Data Rooms

Lawyers who deal with mergers and acquisitions (of course, not only them) quickly get used to a large volume of documents that need to be read. Technologies have made it possible to speed up work by exchanging electronic versions of documents (the availability of originals still needs to be checked, but it's easier). This can be done by sending the requested files by email or using cloud storage: iCloud, Google Drive, or Dropbox.

Virtual Reality: Overview of Datacenter technology

Lawyers who deal with mergers and acquisitions quickly get used to a large number of documents that need reading through. A gigabyte of data is systematically scrutinized, formulated, analyzed, figures, deadlines, obligations are created, etc. are carefully checked. Not so long ago (about five years), the conclusion of the transaction would be preceded by a "cult" trip of the buyer's lawyers into the seller's office to acquaint themselves with all the documents required for the due diligence process in another room. Technology has made it possible to speed things up by exchanging electronic versions of files (the availability of originals needs to be checked, however, it's easier). You can send the requested files via email or use cloud storage services such as iCloud, Google Docs, or Dropbox. Both options are problematic because they're insecure. It may be true that sending important documents by email or simply linking to a file stored on Dropbox is not secure. We will look at a useful tool that helps solve these problems. We're talking about data rooms.

Two Virtual Data Room Groups

Gone are the days when lawyers had to rely on filing cabinets full of paper to store their files. With this software, companies no longer need to sift through piles of paper files, binders, and folders looking for important files.

On the market, there are two types of systems. The first group includes three of the most well-known systems: Merrell DataSite (MD), R.R. Donnelly (RR Donnelley), and internal links.

These companies have a wealth of merger and acquisition (M&A) experience, and their solutions have full functionality without compromising on security. They also let you download and store large amounts. Their prices are quite high since they're formed page by page and paid for by additional users. One group requires users to use a single password for all files they want to download while another requires them to use different passwords for each file they want to download.

The second group includes secure document sharing sites. They're easier to use and less expensive than the previous system.

The main difference is that one group uses a single password to protect all documents while the other requires users to use different passwords.

There are no special differences between the above and the following. Both groups share a common security priority, for example requiring 256-bit AES SSL encrypted connections and multi-factor authentication. Some modern systems also allow the owner to revoke access to a document at any time, even when someone else has already downloaded the document. Dynamic watermarking allows you to add metadata to files uploaded to the system. It can help you keep track of when a file was uploaded, the name of the file, and even the IP address from where the file was uploaded.