The majority of people are familiar with data rooms as a due diligence process of the merger or purchase (M&A) where both parties go through business-critical documents. Data rooms are now being used to assist with more than M&As. They also aid with fundraising, equity deals and company restructuring.
There are numerous types of software solutions for data rooms and it’s important to select the right one for your business. Ideally, it should be easy to start and accessible from anywhere in world with secure logins, encryption technology, and tools to detect unauthorised access or downloads.
Another important feature is the ability to design a folder structure to match your project/due diligence requirements and quickly assign uploading and reading tasks for team members in the internal organization, advisers or third parties. Access permissions that are flexible and can be altered at the both the folder and document levels are also good. Also, when it is time for the Q&A discussion portion of any potential deal, you should look for the solution that comes with an intuitive and efficient editing tool that is wiki-like, making it easy to add notes that can only been viewed by you (and not the other party).
The best online data rooms offer a set of reports that provides administrators with a complete view of user behavior, from what documents have been looked at to whether they’ve been printed or downloaded. Users should be able to export their data in encrypted format, if required. Choose a vendor that offers 24/7 technical and account management assistance.