Case Studies: How Virtual Data Rooms Have Facilitated Successful Business Transactions

Virtual data rooms have become a global business solution for a multitude of industries across the globe. Unlike tons of other SaaS solutions, dataroom software is not limited to one specific purpose or industry. That is why the global data room market has already hit the $1 billion figure and is expected to be a $3 billion industry by 2025.

There is a massive misconception about virtual data room software that it only caters to the needs of dealmakers in the M&A industry. Data rooms have been a highly valuable component for almost all business sectors. Following are some of the most common real-world applications of digital data room software across multiple industries.

Mergers and acquisitions (M&As)

M&As (mergers and acquisitions) is a general term that describes different financial activities, including mergers, acquisitions, divestitures, consolidations, tender offers, etc. Although the transactions are different in nature, the overall processes are the same — in all of which virtual data room software plays a crucial role.

So, how does data room software help in M&A, specifically? To start with, data room software makes the transaction fully digital. Whether it is communication between stakeholders, dealmakers, top management, buyers, and sellers, or voluminous data sharing, the virtual data room has got things covered.

What’s more, it is not just the digitalization of mergers and acquisitions; data room software makes sure every single step in the process is streamlined. For example, it can help to:

  • Automate meetings between any or all parties involved in the deal
  • Schedule and manage different activities in the data room
  • Simplify the data sharing and retrieval process

Target companies are highly reluctant to share their super confidential data with the bidders or buyers due to security concerns. A virtual data room is a massive advancement in minimizing that fear,” says Gilbert Waters, Co-founder and Marketing Specialist at

It is indeed beyond any doubt that virtual data room software is one of the safest data-sharing platforms with unique features like 256-bit data encryption, document access control, file tracking, digital watermarks, fence-view mode, and remote device purging.

IPOs and capital raising

Virtual data rooms are proving to be heaven for fundraisers, especially when companies are going global. Local fundraising may not look that complex, but getting international investors on the page is a whole different game.

There are hundreds and thousands of documents and pages that need to be housed during fundraising, and some of those documents must be made available for weeks or even months. Apart from that, those never-ending questions from investors and regular updates to senior management can be gruesome for fundraisers.

Thanks to data room software, fundraisers can:

  • Create a central data-sharing platform for all potential investors
  • Communicate with management and investors on one platform
  • Create, update, or share documents while having full control over the flow of information in the VDR
  • Decide how much data access should be given to investors
  • Track the activities of investors and interested parties and structure document folders according to their interests

Audit and compliance

Can you imagine the amount of data that an auditor has to go through while conducting audits of a large or even a medium-sized company? Accounts, policies, procedures, inventory records, and almost every important document goes through the eyes of an auditor.

In addition to that, there may be questions and answers between the staff and the auditors. Is it possible for modern-day professionals to manage all this via traditional channels?

Data rooms act as a central place for companies and auditing teams where both parties can easily share documents, answer each other’s queries, and arrange online meetings if needed. 

The best part? Both sides can keep track of all the activities, and companies can make sure their confidential documents are safe.


The legal industry is arguably the most relieved business sector after the introduction of virtual data room software. The amount and type of data which a law firm manages needs special protection. From customers’ private information to a company’s confidential documents, lawyers can land in deep waters if there is a data breach.

In addition to that, how to access case-related documents safely from different places is another headache for law teams. A virtual data room software allows them to communicate with each other and clients and share documents in one place. Some vendors go beyond data sharing and communication, offering a built-in library of digital forms.

Some other highly notable use cases of data room software include real estate management, partnerships, joint ventures, risk management, biotech licensing, etc.

The diversity which virtual data room software brings to the business world is hard to beat. This is why data rooms are a popular choice for mergers and acquisitions, IPOs and capital raising, audit and compliance, litigation, and more.

Parting thoughts

Some of the notable data room services include iDeals, ShareVault, Merrill, and Ansarada. However, it is essential to conduct your own research to choose a suitable solution for your business and use case.