A data room is a safe online repository of business documents and files. They are typically used to conduct due diligence on an upcoming transaction, but due to the rise of remote working and technical advancement, they are used in increasing numbers throughout the entire business lifecycle. From fundraising and divestitures through to internal file sharing and storage.
It is essential to invest some time in the planning phase to determine how you intend to use the data room and what features are most beneficial to your business. This will avoid unforeseen expenses and unnecessary effort and ensure the right level of functionality available to meet your particular requirements.
You will also save time and money by selecting the right data room service. In contrast to physical rooms, virtual data rooms need a smaller operating budget because you don’t need to hire a secure space and pay security companies to keep the room in check at all hours. If you have many users from different time zones and locations it is advisable to choose a service that provides 24/7 assistance. This will ensure that your team receives the help they need when needed.
A key feature is the ability to quickly access reports describing the activities of users – who downloaded which documents, when they were accessed and whether they were printed or downloaded. These tools for reporting can be beneficial from a managerial and security perspective, as they provide an overview of user activity that can be used to guide future planning and implementation.
