A data room solution is designed to streamline and assist due diligence processes. It has simple-to-use processes that are safe for all parties. The software allows companies to safely store and share confidential documentation in the course of M&A transactions restructuring, listing on stock exchanges and capital acquisitions procurements, outsourcing and other projects.
In contrast to the physical data room which requires everyone from the top management to the stakeholders to travel to one location, a virtual data space is accessible from anywhere in the world through the internet. This lets everyone have access to the data immediately and efficiently and saves time. Furthermore, the digital documents stored in online data rooms aren’t affected by natural disasters such as storms or fires and are accessible as long as the internet is operational.
A reliable data room will have a sophisticated search feature that can detect exact and partial matches within all documents, folders, images and PDFs through labels, tags, and optical character recognition. You can create a document index, automatically number files and add dynamic watermarks which are visible when documents are printed or viewed.
You should also make sure that the software you choose has an array of security features, including two-factor authentication, customizable NDA and permission-based user roles. Some vendors offer extra security with a data encryption solution that protects the entire repository. Most reputable vendors also offer a 30-day free trial.