A data room is an online repository for files and documents that are shared securely with third party. They are usually used for due diligence for the possibility of a transaction, however due to the rise of remote working and technological development, they are being utilized more frequently throughout the entire business lifecycle. From the process of fundraising and divestitures, to internal storage and file sharing.
It’s essential to take some time at the planning stage to review how you will utilize a data room and which features will be most advantageous for your company. This will prevent unexpected costs or waste of time and ensure the right level of functionality is in place for your particular needs.
Choosing the right data room service provider can save your time and money. Virtual data rooms are less costly to operate than physical rooms, since you don’t need to pay for a secure space or for security companies to watch it at all times. Furthermore, if you’re dealing with an abundance of users from various time zones and locations, it’s best to select a provider which provides 24/7 support to ensure your staff can get the help they require when it is most needed.
A key feature is the ability to quickly access reports that detail user activities – who accessed the documents, at what time and whether they were downloaded or printed. These reporting tools are useful from both a management and security standpoint since they provide a comprehensive view of the user’s activities that can be used to guide future data room planning and implementation.