Full Report

The majority of people associate data rooms with the due diligence process of the merger or purchase (M&A), where both parties review documents that are critical to business. Data rooms are now used for a variety of purposes beyond M&As. They can also assist with equity transactions, fundraising and restructuring of companies.

There are now many different types of software for data rooms and it’s crucial to choose one that is suitable for the requirements of your company. Ideally it should be easy to begin and be accessible from anywhere in the world with secure logins and encryption technology, and tools to detect illegal downloads or access.

Another essential feature is the ability to create a folder structure that matches your project/due diligence needs and easily assign tasks for reading and uploading to team members within the organization advisors, as well as third-party partners. Access permissions can be tailored at the level of folders and documents. And, when it comes to the Q&A discussion portion of an upcoming deal, you should look for solutions that include an intuitive and efficient editor that is wiki-like and makes it easy to create notes that can only be viewed by you (and not the other party).

The most reliable online data rooms provide a variety of reports that provides administrators with a comprehensive view of user activities, from the number of documents looked at to whether they’ve been printed or downloaded. They should also allow users to export data in an encrypted format for later use if needed. Look for a provider who offers 24 hour technical and account management help.