A data room is a safe digital location that houses sensitive documents, information, and confidential documents. These are usually used for due diligence during business transactions, IPOs, and court proceedings. Companies that require collaboration with multiple parties in projects that are shared also make use of data rooms.
In the past physical rooms were the most commonly used method of conducting due diligence during an transaction. They were expensive and required an extensive amount of planning to coordinate meetings in-person. With a virtual data space, due diligence is faster and easier. Virtual datarooms are cloud-based application for file sharing that lets participants access documents from anywhere in the globe, without needing an in-person meeting. Virtual data rooms have advanced features like document tracking along with version control and simple collaboration.
If you’re planning an acquisition or merger, or raising capital, getting all the necessary people in one place to sign and review documents is essential. But it can also take a long time, is inefficient, and extremely frustrating. Email is a notoriously chaotic method of sharing documents. With the rise of phishing attacks and the threat of phishing increasing, it’s more crucial than ever that you adopt a more due diligence process.
PandaDoc lets you create an entire data room in minutes, and simplify your documentation. You can add any number of documents into a dataroom, and then use guided signatures to collect all signatures required. Start today!