Frequently Asked Question
What is a virtual data room? A virtual data room is an online solution that allows businesses to secure store and share sensitive documents used in business. These services allow businesses to simplify workflows and enhance due diligence processes by automating document management and granting specific access control. Typically, businesses turn to data rooms for M&A transactions, IPOs, real estate asset lifecycle management, and other projects that require secure collaboration and storage of documents.
Typically companies utilize data rooms to share security documents, including certifications patents, certificates as well as other compliance information for potential buyers or business partners for the purpose of performing due diligence. This information was usually shared via email. This left your business exposed to phishing, theft of credentials, and other risks. With data rooms where you can upload all of your due diligence documents and easily control who has access to what information and when.
When looking for a data room service, look for one that has features like multi-factor authentication and dynamic watermarking, redaction fence view and a comprehensive tracking to make sure your vital data remains private. Also, find a data room that supports the most popular formats for files like PDF and Microsoft Office so that you can upload all your documentation prior to signing the deal.
A secure data room should have a simple, user-friendly interface that will improve collaboration and enable employees to work more efficiently. You should look for providers that provide features such as an interactive Q&A feature, a mobile app you can download, and a unified dashboard so everyone is on the same page.