What is a virtual data room A virtual data room is an online service that allows businesses to securely store and share sensitive documents for business. These solutions enable businesses to simplify workflows and enhance due diligence processes by automating document management and providing specific access control. Typically, companies use data rooms for M&A transactions, IPOs, real estate asset lifecycle management, as well as other projects that require a secure collaboration and storage of documents.
Typically companies use a data room for sharing security documents, such as certifications patents, certificates of conformity and other information about compliance that could be shared with prospective buyers or business partners for the purpose of performing due diligence. Traditionally the information is shared via email, which makes your business vulnerable to theft of credentials, phishing attacks and other threats. With a data room, you can upload all of your due diligence files and easily control who has access to what and when.
Choose a provider that provides features such as multi-factor authentication and dynamic watermarking. Also, think about fence view, complete tracking, and redaction. These will ensure that your personal information is kept private. Also, look for a data room which supports the most commonly used file formats such as PDF and Microsoft Office so that you are able to upload all of your documentation prior to signing the deal.
A secure data room should have a simple, user-friendly interface that enhances collaboration and allow employees to work more efficiently. Find providers that offer features such as the Q&A tool, mobile application that can be downloaded and a central dashboard to ensure that everyone is on the same page.