Most people consider data rooms to be part of the due diligence process in the merger or purchase (M&A), where both parties look over business-critical documents. Data rooms are now used for more than just M&As. They can also assist with equity transactions, fundraising and company restructuring.

There are many different types of software solutions for data rooms, and it is crucial to choose the one that best suits your business. It should be simple to use and accessible from anywhere with secure logins and like it encryption technology. Tools to detect unauthorized downloads or access are also crucial.

Another key feature is the capability to create a folder structure that matches the requirements of your project or due diligence and easily assign uploading and reading tasks to team members within the organization advisers, third party partners or other team members. Access permissions can be customized at the folder and document levels. When it is the Q&A phase of a potential deal, look for an application that is user-friendly and effective editing tool in the wiki style, which allows you to create notes only visible by you (and only you and no one else).

The top data rooms online offer a suite of reports that provide administrators with a complete picture of user activities, from which documents have been looked at to whether they’ve been downloaded or printed. Users should be able to export their data in encrypted format if they need to. Find a service that provides 24/7 technical support and account management.