What to Look For in Data Rooms

Most people associate data rooms with the due diligence process that occurs during a merger or purchase (M&A), where both parties review business-critical documents. Data rooms are being used for more than just M&As. They can also assist with equity transactions, fundraising and company restructuring.

There are many different types of software solutions for data rooms and it is important to select the right one for your business. It should be simple to start and accessible from anywhere in world, with secure logins, encryption technology and tools to block unauthorized access or downloads.

Another essential feature is the ability to design a folder structure to match your project/due diligence requirements and easily assign tasks for reading and uploading for members of your team advisors, as well as third-party partners. Access permissions can be tailored at the folder and document levels. When it is time to move to the Q&A discussion stage in a potential deal, you should look for solutions that include an intuitive and efficient editing tool that is wiki-like, making it simple to add notes that can only be viewed by you (and not the get more other party).

The best online data room provides an array of reports that provide administrators a complete view of the activities of users. This includes the type of documents were looked at, as well being able to tell if they were downloaded or printed. Users should be able to export data in encrypted format, if needed. Choose a vendor that provides 24/7 technical support and account management.