The majority of people associate data rooms with the due diligence process in the merger or purchase (M&A), where both parties go through business-critical documents. However, today data rooms are used for much more than M&As they also aid with equity and fundraising deals as well as company restructuring.

There are many different types of software solutions for data rooms and it is important to select one that is suitable for your business. It should be simple to use and accessible from any location with secure logins and encryption technology. Tools to identify unauthorized downloads or access to your data are also crucial.

Another key feature is the ability to create an organization structure that is compatible with your project/due diligence needs and quickly assign uploading and reading tasks for team members in the internal organization, advisers or third parties. Access permissions that are flexible and can be altered at the document and folder level are also beneficial. And when it is the Q&A discussion stage in a potential deal, you should look for an option that has an intuitive and efficient editing tool that resembles a wiki. It makes it easy to create notes that are only viewable by you (and not the other party).

The virtual data room service best online data room offers a suite reports that give administrators a complete view of the activity of users. This includes the type of documents were seen, as well in the event that they were downloaded or printed. They should also allow users to export data in an encrypted format for later use if needed. Finally, look for a service that provides ongoing technical and account management support that is accessible 24 hours per day all year round.