What to Look For in Data Rooms

Posted by Security Vault

When most people think of data rooms, they are probably thinking of due diligence, the process used in merger or acquisition (M&A) deal where both sides review business-critical documentation. However, today data rooms are used for more than M&As they also aid with fundraising and equity transactions as well as company restructuring.

In the end, there are many types of software solutions for data rooms like it and it’s crucial to choose one that is suitable for the requirements of your business. It should be simple to get started and be accessible from any location in the world with secure logins, encryption technology and tools to block any unauthorized access or downloads.

Another important feature is the ability to create a folder structure that matches the requirements of your project or due diligence and easily assign uploading and reading tasks for internal team members, advisers or third parties. Access permissions can be tailored at the level of folders and documents. And when it is the Q&A discussion portion of a potential deal, you should look for a solution that includes an intuitive and effective editor that is wiki-like and makes it easy to create notes that are only viewable by you (and not the other party).

The most reliable online data rooms offer an array of reports that provide administrators a complete view of the user’s activities. This includes the type of documents were viewed, as well being able to tell if they were printed or downloaded. They should also permit users to export their data in encrypted format for later use, if required. Additionally, you should look for an organization that provides ongoing support for account management and technical issues that is accessible 24 hours a day all year round.