Whether you’re selling your business or planning an investment round, the virtual data room can help you keep sensitive information in one place, with access managed by the administrator. You can upload files and documents that are then shared with potential investors or buyers to review – making processes more efficient and speeding up the due diligence and deal-making process.

A data room is generally utilized in the due diligence phase of M&A transactions, when both parties review documents that are critical to business and negotiate the terms of the transaction. You can also use a Data Room for legal processes, equity and funding transactions, or any other transaction that requires confidential information.

Most data rooms come with several templates that you can customize according to the type of transaction you are carrying out. This makes it simple to create a folder structure that has document names that reflect the nature of the transaction and make it easy for users to locate what they require quickly. You can create a folder named “financial information” and subfolders to organize documents such as contracts or accounting reports.

In addition to the pre-built templates and folder structures A good VDR solution will offer an array of reporting tools which allow you to monitor and track the use of your secure ma transactions data room. This is particularly important after your data room has opened to a third party, since it provides transparency and accountability on who uploaded what document at what time. You should therefore look for an online service that provides this suite of reporting along with ongoing technical and account management support, ideally available 24/7/365.