A data room is a digital repository that houses business documents and other information in a safe and secure manner. They are commonly used to conduct due diligence during the process of a potential sale, but they can also be beneficial for other purposes, such as sharing information with customers, partners or investors.
Data rooms come in a variety of features however, they all have the same fundamental functions that are deal management vital to any company that utilizes them. They are able to share large files and store them with multiple parties. Flexible search functions allow users to find documents, even when they’re buried deep in the data. Secure data encryption is a crucial feature to consider incorporating since it protects the data from accidental disclosure. In addition, the ability to manage the tasks and determine who is assigned to what task is helpful to ensure the work is completed quickly. With a rise in remote and hybrid teams being able to access documents from any location that has an internet connection is key.
It is also crucial to have the ability to delete information if the document has been shared with an unrelated third party. A good data room will offer the ability to redact information that is easy to use and will remove a single or multiple instances at the click of a switch instead of having to manually select and eliminate each time. It is also helpful to be able to monitor the activity in the data room to determine who is watching what and when.