How to Select a Data Room Service

A data room service provides a safe, virtual space to share information during due diligence, M&A, financing, bankruptcy and other transactions and business processes. In these instances, the information shared could be classified or private. Therefore, it is important to safeguard the data. Making use of a data room in order to share files can save time, money and effort over physical or electronic documents. The best choice for a data room requires some upfront analysis to determine which features are most beneficial for you and your specific situation.

There are many providers of data rooms that each offer a different set of features. Some focus on security, others on user experience and communication and some offer a mix of both. The most well-known choices are Firmex, VDRSimple, iDeals, Intralinks, and Merrill Datasite.

Most of the data rooms offer access rights that are granular to ensure privacy and ensure that users only access relevant material. Some offer multi-factor authentication as well as time and IP access restrictions to avoid illegal downloads or use. Some even offer internal team messaging, which reduces the need for external communication tools like email and helps to reduce redundant communications.

A few providers have added value with additional services that expedite the due diligence process, for example document scanning and transcription, and eDiscovery. Adding these services is often an extra expense, however it can be worth the investment for smaller businesses and complicated transactions.

Leave a Reply

Your email address will not be published. Required fields are marked *