What to Look For in Data Rooms

The majority of people are familiar with data rooms as a due diligence process in a merger or purchase (M&A), where both parties go through business-critical documents. However, these days, data rooms are used for more than M&As and can also assist in fundraising and equity deals and company restructuring.

This is why there are many types of software solutions for data rooms and it’s essential to select one that is suitable for the requirements of your company. Ideally it should be easy to start and be accessible from any place in the world with secure logins and encryption technology and tools for detecting unauthorized access or downloads.

Another crucial feature is the ability to design an organization structure that is compatible with your requirements for due diligence or project and quickly assign tasks for reading and uploading to team members within the organization advisers, third party partners or other team members. Access permissions can be customized at the document and folder levels. And, when it is time for the Q&A discussion portion of a potential deal, look for the solution that comes with an intuitive and effective editing tool that resembles a wiki. It makes it easy to add notes that can only be viewed by you (and not the other party).

The best online data room provides a suite reports that give administrators a complete overview of the user’s activities. This includes what documents were viewed, as well in the event that they were printed or downloaded. They should also permit users to export their data in a secure format for future use in the event of a need. Also, find a provider that offers ongoing support for account management and technical issues that is available 24 hours a days 365 days a year.

Full Report