Frequently Answered Questions
What is a secure data room? A virtual data room is a solution in the cloud specifically designed to secure the storage and sharing of sensitive business documents. These services allow businesses to simplify workflows and enhance due diligence processes by automating document management, and offering the ability to control access to documents in a granular manner. Typically, companies use data rooms for M&A transactions, IPOs, real estate asset lifecycle management, and other projects that require secure collaboration and storage of documents.
Most commonly, companies use a secure data room to share security documents such as patents, certificates and other information regarding compliance with potential buyers or partners for due diligence. Traditionally the information is shared via email, leaving your company at risk of being hacked credentials, phishing attacks, and other threats. With data rooms it is possible to upload all your due diligence records and easily control who can access what information and when.
If you are looking for a data room provider, search for one that offers features such as multi-factor authentication with redaction, dynamic watermarking, fence view and comprehensive tracking to ensure that your crucial information is kept private. Also, find a data room that can support the most widely used file formats such as PDF and Microsoft Office so that you can upload all your documentation prior to signing the deal.
In addition, a secure data room should have an easy and user-friendly interface in order to enhance collaboration and enable employees to work more efficiently. Look for providers with features such as an interactive Q&A tool, a downloadable mobile app and a dashboard that is unified to keep everyone on the same page.