Explain briefly the advantages as well as disadvantages of a virtual data room.

Virtual Data Room is a site where all the required data of the prospective buyer are stored in digitalized or electronic form. Due diligence exercise these days is carried out through creation of virtual data room in the form of internet site where all the confidential/ material business information is stored. Major Advantages of Virtual Data Room Savings in cost Saving in time More Comfort to buyer and Seller Availability of information at any time of the day Enables multiple prospective bidders to access the Virtual Data Room Easy to Set up More Secured Improved Efficiency Copying/printing of documents may be restricted. Closure of Virtual Data Room may happen at any time Some Disadvantages of Virtual Data Room limited interaction with prospective sellers. lack of clarity of documents loaded on the data-site. inability to copy or print information sometimes becomes a hurdle. access to sensitive information such as contracts to third parties poses legal challenges relating to confidentiality of information.