A data room is a safe digital storage space that can house sensitive confidential documents and data. These are often used for due diligence in business transactions, IPOs, and court processes. Companies that need to collaborate with several parties on shared projects can also use data rooms.
In the past, physical rooms were the most commonly used method of conducting due diligence during a transaction. They were expensive and required lots of planning to coordinate in-person meetings. With a virtual data space, due diligence is faster and more efficient. A virtual data room is a cloud-based sharing tool that allows participants to access files from anywhere in the world without the need for an in-person meeting. A virtual dataroom comes with advanced features, like document tracking and control of version. It also permits simple collaboration.
Whether you’re working on an acquisition or merger or raising capital, having all the necessary people in the same place to review and sign documents is key. It can be difficult slow, inefficient and time-consuming. Email is a notoriously messy method to send documents, and with increasing phishing attacks it’s now more crucial than ever to adopt a better virtual data room benefits approach to due diligence.
PandaDoc allows you to create a dataroom in just minutes, and also streamline your documentation. You can upload and save any number documents in the data room, and then use guided signing to gather signatures from everyone involved in the process. Start today!