Frequently Asked Question
What is a virtual data room? A virtual data room is an online service that allows businesses to secure store and share sensitive documents for business. These tools help businesses streamline workflows and improve their due diligence processes by implementing automated document management and granular access control. Typically, enterprises turn to data rooms for M&A transactions, IPOs, real estate asset lifecycle management, as well as other projects that require private collaboration and document storage.
The majority of companies use a secure data room to share security documents such as patents, certificates and other information regarding compliance with potential partners or buyers for due diligence. Traditionally this information would be sent via email, which makes your company vulnerable to theft of credentials, phishing attacks and other threats. You can upload your due diligence documents and decide who will see them and the time they view them.
Look for a provider that provides features such as multi-factor authentication and dynamic watermarking. Also, think about fence view, comprehensive tracking, and redaction. These help ensure that your sensitive information remains private. Choose a room that can work with the most popular file formats, like Microsoft Office and PDF, so you can upload all of your documents prior to signing a contract.
Finally, a secure data room must have a clear and user-friendly interface that will improve collaboration and enable employees to work more efficiently. Find providers that offer features such as an interactive Q&A tool, a mobile application that is downloaded and installed and a dashboard that is unified to ensure everyone is on the same page.