How Can Lawyers use Virtual Data Rooms in Their Practice?

As I’ve discussed in the past, online collaboration platforms generally allow for far more secure communication than email and offer attorneys a secure online location for collaboration.

But what types of specific transactions can be handled in online collaboration platforms such as virtual data rooms? Well, the answer depends on the type of law that you practice. If you’re a corporate attorney, you can use a virtual data room for mergers and acquisitions transactions, ranging from due diligence with a single buyer to a staged sell side auction.

Likewise, online document repositories can be very useful for real estate matters, allowing lawyers to more easily manage sales and leases, in addition to restructuring asset backed loans & mortgages.

Restructuring and Insolvency transactions are also well suited for virtual deal rooms. Lawyers can use virtual data rooms to organize files in multiple structures within the same project to control access to files and functionality and create additional deal rooms to buy and sell assets, close financings, or raise additional capital.

Another practice area for which virtual data rooms are useful is corporate finance. Virtual data rooms accommodate a wide variety of transactions, from private placements and debt financings to high volume municipal bond issues. New transactions can be set up in minutes and the unique closing process facilitates fast efficient closings.

IP attorneys may find that a virtual deal room is the ideal place to exchange and share documents related to joint ventures, licensing agreements, intellectual property, partnerships, fund raising, financing, and reporting.

Finally, for litigation attorneys a secure online virtual data room is the ideal place to exchange information with opposing counsel, clients, experts and others throughout the litigation process.

One thing is for sure: the many ways that law firms can use online collaborations spaces, like the virtual data rooms provided by Firmex, are unlimited. Online collaboration platforms can save you time, money and reduce the hassle involved in sharing and collaborating on documents. Not all areas of practice are well suited for online collaboration, but who knows? It just might be a good fit for one of your areas of practice.

Debbie Stephenson

Debbie Stephenson is a former Content Marketing Manager at Firmex.