Virtual Data Room - VDR

DEFINITION of 'Virtual Data Room - VDR'

A virtual data room (VDR) is a secure online repository for documents and analysis, typically utilized during the due diligence process preceding a merger or acquisition. 

BREAKING DOWN 'Virtual Data Room - VDR'

Investment bankers and their clients can share comments on the documents within the virtual data room. VDRs have largely replaced the need for investment bankers to physically gather together for analysis of company financials and forecasts in preparation for the buying, selling or merging of companies. This has increased the speed, efficiency and security of the merger and acquisition process.