Data rooms are a better choice to share confidential business information with third-party partners than free file-sharing services like Dropbox or Google Drive. They offer a custom user-friendly interface that can be customized with branding and integration into existing IT systems and workflows. They also include important security features such as specific permissions, audit trails, fence view and watermarking which are vital to ensure conformance with industry regulations and privacy laws.
It is essential to have features that can help users navigate large volumes of documents quickly, and locate the files they require. These include folder structure, clear labeling convention, indexing and version control to allow users to locate documents by referencing keywords or metadata. They can help save time and effort by automating the process of naming index numbers. This creates a logical map that users can follow when looking over documents.
A data room can simplify the process of reviewing documents, not only for investors, but also for other interested parties. Multiple users can browse, read and make comments on documents in real-time through parallel document viewing and annotation capabilities. This increases productivity and speeds up the turnaround time of documents.
Furthermore, a virtual data room can improve communications with stakeholders by creating an organized Q&A, which records questions and answers and also tracks outstanding issues. This lets the seller and buyer to quickly resolve any miscommunications and prevents information from slipping through the cracks.
