A data room is a safe digital space that holds sensitive documents, confidential information and documents. They are used to carry out due diligence in business transactions, IPOs and court proceedings. Companies that need to collaborate with several parties on projects that are shared also make use of data rooms.
In the past, physical rooms were the most popular method of conducting due diligence during an transaction. These were expensive, and required a lot of planning to arrange meetings in person. With the use of a virtual data room due diligence is quicker and much easier. Virtual datarooms are cloud-based software for file sharing which allows users to access documents from anywhere in the globe, without websites needing an in-person meeting. A virtual dataroom is equipped with advanced features such as document tracking and version control. It also allows for simple collaboration.
When you’re working on a merger and acquisition or raising capital, getting all of the right people in one place to sign and review documents is key. It can be frustrating slow, inefficient and time-consuming. Email is a notoriously chaotic method of sharing documents. With the rise of phishing attacks it is more imperative than ever that you adopt a more due diligence strategy.
PandaDoc lets you create an entire data room in minutes, and simplify your documentation. You can add any number of documents to the dataroom and use guided signatures to gather all the signatures needed. Start today!