A data room is a safe digital location that stores sensitive documents, confidential information and documents. These are usually used for due diligence during business transactions, IPOs, and court proceedings. Companies that require collaboration with several parties on shared projects also use data rooms.
In the past physical data rooms were the primary method for conducting due diligence during a transaction. These were expensive and required a lot of planning to coordinate meetings in-person. Due diligence is much easier and faster with the help of a virtual dataroom. A virtual data room is a cloud-based sharing tool that allows participants to access files from anywhere in the world, without the need for an in-person meeting. Virtual datarooms have advanced features such as document tracking and control of version. It also facilitates easy collaboration.
If you’re planning the merger and acquisition process or raising capital, getting everyone in one location to review and sign documents is crucial. However, it can be time-consuming, inefficient and extremely frustrating. Email is a notoriously chaotic method of sharing documents. With an increase in phishing-related attacks, it is more important than ever that you switch to a better due diligence strategy.
PandaDoc allows you to create a dataroom in just minutes, and also streamline your documentation. You can upload and store any number of documents in the data room, and then use guided signing to collect signatures of everyone involved in the process. Get started today!