When most people think of data rooms, they are probably thinking of the due diligence process that is used for merger or acquisition (M&A) deal in which both parties review critical business documents. Data rooms are now used for more than M&As. They can also assist with equity deals, fundraising, and restructuring of companies.

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

Another feature that is important is the possibility of creating a folder structure that matches the requirements of your project or due diligence and assigning uploading and reading tasks to members of your team or advisors as well as third party. Access permissions for multiple users that can be customised at an individual level for both folders and documents are also a good idea. When it is time for the Q&A discussion portion of a potential deal, you should look for the solution that comes with an intuitive and efficient editing tool that resembles a wiki. It makes it simple data rooms to add notes that are only viewable by you (and not the other party).

The best online data rooms offer a suite of reports that provides administrators with a comprehensive view of user activity, ranging from the number of documents seen to whether or not they have been printed or downloaded. They should also permit users to export their data in a secured format for later usage if needed. Choose a vendor that provides 24/7 technical and account management assistance.