A data room is a digital space that securely stores sensitive and confidential documents. They are used to conduct due diligence in business transactions, IPOs and court proceedings. Companies that need to collaborate with multiple parties on projects that are shared also make use of data rooms.
In the past, physical data rooms were the usual method for conducting due diligence during a transaction. These were expensive and required lots of planning to coordinate meetings in person. Due diligence is simpler and quicker when you use the use of a virtual dataroom. A virtual dataroom is a cloud-based software for file sharing which allows users to access documents from anywhere on the globe, without needing an in-person meeting. Virtual data rooms have advanced features, including document tracking as well as version control and easy collaboration.
It’s essential to bring everyone you need in one place, regardless of whether you’re attempting to make an acquisition or looking to raise money. However, it can take a long time, is inefficient, and incredibly frustrating. Email is a notoriously chaotic method of sharing documents. With phishing attacks on a rise it is more imperative than ever to change to a more thorough due diligence process.
With PandaDoc, you can create a data room in minutes and click here for more use it to streamline your documentation process. You can upload any number of documents into the dataroom, and use guided signatures to collect all signatures required. Get started today!