A data room is an online repository for business documents and files that are securely shared with third-party organizations. Most commonly, they are used for the due diligence process in the potential acquisition, but the technical development and remote work means they are being utilized throughout the entire life cycle of a business from fundraising and divestitures to internal storage and file sharing.
It’s essential to take some time during the planning phase to evaluate how you intend to utilize a data room and which features are most advantageous for your company. This will help you avoid unnecessary costs or time and ensure that the appropriate level of functionality is in place for your specific needs.
You will also save time and money by choosing the right data room service. In contrast to physical rooms, virtual data rooms require a lower operating budget as there is no need to rent a secure location and pay for security companies to monitor the room at all hours. Additionally, if you have an abundance of users coming from different places and time zones, it’s worth choosing a provider which provides 24/7 support to ensure your employees can receive the help they require when it is most needed.
Another feature to look out for is the capacity to easily access reports detailing the activities of users – who seen which documents, when they accessed them and whether they printed or downloaded them. These tools for reporting can be beneficial from a managerial and security standpoint, as they provide an overview of the user’s activities that can be used to guide the future implementation and planning.