A data room is a secure digital location that stores sensitive documents, information, and confidential documents. They are used to conduct due diligence in business transactions, IPOs and court proceedings. Data rooms are also utilized by companies that must collaborate on collaborative projects with multiple parties.
In the past, physical rooms were the most common way to conduct due-diligence during the course of a transaction. They were costly and required lots of planning to coordinate meetings in person. Due diligence is much easier and quicker when you use the use of a virtual room. A virtual data room is a cloud-based sharing tool that enables participants to access files from anywhere in the world without the need for an in-person meeting. Virtual datarooms have advanced features like document tracking and control of version. It also allows for easy collaboration.
If you’re planning an acquisition or merger or raising capital, getting everyone in the same place to sign and review documents is crucial. It can be frustrating, time-consuming and inefficient. Email is a notoriously unorganized method of sharing documents. With an increase in phishing-related attacks it is more imperative than ever that you switch to a better due diligence method.
PandaDoc lets you create data rooms in minutes, and streamline your documentation. You can upload any number of documents into a dataroom and make use of guided signatures to get all signatures required. Get started today!