Whether you’re selling your business or preparing for a fundraising round, a virtual data room helps you store sensitive information in one location with access controlled by the administrator. You can upload documents and files that are then shared with potential investors or the buy-side to review – creating process efficiencies and speeding up due diligence and deal-making process.

A data room is typically used in the due diligence phase of M&A transactions, where both parties go through business-critical documents and negotiate the terms of the deal. However, you can also utilize a data room for equity and funding transactions and legal proceedings, as well as any other business deal where you need to share confidential information.

The majority of data rooms offer several templates that can be customized to fit the type of transaction you are undertaking. This lets you create folders with names for documents that are relevant to the task and helps users to find what they require. For instance, you could create a folder with the name ‘financial information’ and subfolders for documents such as accounting reports or contracts.

In addition to the templates and folder structures that are pre-built In addition, a good VDR solution will also provide a set of reporting tools that allow you to observe and monitor the use of your data room. This is especially crucial after your data room is opened to a Page 11dataroom.com/why-virtual-board-rooms-are-the-future-of-corporate-decision-making/ third party, since it provides transparency and accountability of who uploaded which documents and when. You should therefore choose a provider that offers this suite of reporting along with ongoing technical and account management support which should be available 24/7/365.