Many think of data rooms as the due diligence process that occurs during a merger or purchase (M&A) where both parties review business-critical documents. However, these days, data rooms are used for much more than M&As They also assist with fundraising and equity transactions and also for company restructuring.

There are now a variety of software for data rooms and it is essential to choose one that fits the needs of your company. It should be easy to access from anywhere with secure logins and encryption technology. Tools to detect unauthorized downloads or access are essential.

Another essential feature is the ability to design an appropriate folder structure to meet your project/due diligence requirements and easily assign reading and uploading tasks for members of your team, advisers or third parties. Access permissions can be tailored at the document and folder levels. When it comes to the Q&A stage of a possible deal look for an application that is user-friendly and effective editing tool in the wiki style, which allows you to make notes only visible by you (and only you and no one else).

The best online data room comes with the ability to provide administrators a complete picture on user activity. This includes what documents were looked at, as well in the event that they were downloaded or printed. Users should be able to export their data in encrypted format, if required. Choose a vendor that provides 24/7 technical and account management support.