How to Select a Data Room Service

A data room service is a secure, virtual environment that permits sharing of data during due diligence, mergers and acquisitions, financing, bankruptcy and other business transactions. In these situations, information shared could be classified or secretive. Therefore, it is important to secure this data. Making use of a data room in order to share files can save time and money over physical or electronic documents. The best choice for a data room is a matter of doing some preliminary investigation to determine what features will be the most beneficial to you and your needs.

There are many companies offering data room services, each offering an individual set of features. Some focus on security, others on the user experience and communications, and others provide a combination of both. Some of the most popular options are Firmex, VDRSimple, iDeals, Intralinks, and Merrill Datasite.

Most data rooms provide access permissions that are specific to the user’s needs to protect confidentiality and ensure that users only review relevant materials. Some also provide multiple factor authentication, as well as time and IP access restrictions to stop illegal downloads or use. Some also offer internal team messaging which can reduce the need for external communication tools like email, and can help to cut down on redundant communications.

Some companies offer additional services to accelerate due diligence, including document transcription and scanning. Adding these services is typically an extra cost, but it can be worth the investment for smaller businesses and complex transactions.