A virtual transaction room (VTR) is a secure, online location that allows firms to safely transfer files in order to facilitate transactions. This software streamlines the process of due diligence by reducing costs and allowing for quicker completion of transactions. It helps organizations eliminate the need to distribute teams by letting all the involved parties view documents from one internet central location. It also reduces the time employees spend exchanging information and arranging it.

VDRs are employed in a range of industry sectors. They are used during M&A due diligence, they assist companies to share sensitive data with potential buyers without risk of breaches or leaks. Additionally, pharma and biotech companies rely on VDRs to provide their clinical trial documentation, research reports and intellectual property with third parties.

Unlike traditional transaction rooms, modern VDRs are focused on security from the bottom up. They offer advanced encryption both in transit and in rest, granular access control, discrete viewing and revoke features and document-level capabilities like watermarking and disabled printing.

VDRs that are most useful can also streamline due diligence and other business processes, by permitting users to collect and arrange documents, share them and track them 24/7/365. This lets professionals concentrate on providing value to their clients, instead of searching for documents. VDRs are also utilized by professionals in the fields of accounting, legal, and banking to streamline customer interactions by simplifying complex data collection. This helps businesses compile investment portfolios and produce precise analyses more easily.