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What to Look For in Data Rooms

Most people think of data rooms as the due diligence process of the merger or purchase (M&A), where both parties review business-critical documents. However, today data rooms are used for much more than M&As They also assist with fundraising and equity transactions and also for company restructuring.

There are numerous types of software solutions for data rooms, and it is crucial to choose one that suits your business. The ideal is for it to be easy to get started and be accessible from anywhere in world using secure logins, encryption technology and tools to block unauthorized access or downloads.

Another key feature is the capability of creating a folder structure that matches your requirements for due diligence or project and assigning uploading and reading tasks to team members within the internal organization as well as advisors and third parties. Granular access permissions that can be customized at both the document and folder level are also a good idea. And when it is time to move to the Q&A discussion portion of an upcoming agreement, look for an option that has an intuitive and efficient wiki-style editing tool that makes it easy to create notes that can only be viewed by you (and not the other party).

The best online data room offers the ability to provide administrators a complete picture on the user’s activities. This includes the type of documents were looked at, as well in the event that they were printed or downloaded. They should also allow users to export their data in a secure format for later use, if required. Find a service that offers 24 hour technical and account management assistance.

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