A data room service offers a safe, virtual space to share information during due diligence, M&A, financing, bankruptcy and other transactions and business processes. The information shared in these situations may be sensitive or confidential which is why it is vital to protect this information. With the data room, you can save time, money, and effort compared to emailing or printing documents. The selection of the best data room will require some initial investigation to determine what features are most advantageous for you and your situation.
There are a myriad of providers of data rooms each with a different set of features. Some providers of data rooms focus on security while others focus on the user experience and communication. Others offer a mixture of. Some of the most popular options are Firmex, VDRSimple, iDeals, Intralinks, and Merrill Datasite.
The majority of data rooms provide access permissions for users that are granular, which ensure confidentiality and allow users to only have access to relevant information. Some offer multi-factor authentication as well as time and IP access restrictions to stop unauthorized downloads or usage. Some offer internal team messaging that can reduce the requirement for external communication tools such as email. They also help to reduce redundant communications.
Certain providers offer additional services to accelerate due diligence, including document transcription and scanning. These services are usually an extra expense, however it can be worth the cost for smaller companies and transactions that are complex.