The main reason for using the data room is to store the essential business documentation. They are typically used in M&A transactions and fundraising in addition to other due diligence processes. They can be secured by password protection, two factor authentication watermarks, two factor authentication, and other privacy features. It is particularly useful for companies that work with sensitive data, such as biotechnology or medical devices.

A data room can be accessed by authorized users from any location connected to the internet, including mobile phones and tablets. Users can access, print and download documents in the data room. They can also save them to review later. Users can also ask questions, receive notifications when documents are uploaded or if there are new comments made to an existing document. The data room can be searched and indexed, making it easy to find information, even if the information is scattered or poorly organized.

Create an organization structure for your folders that reflects the nature of your business or transaction to maximize the value of your data room. Label the folders clearly and then group documents together to make it easy for buyers to view the whole picture. Consider implementing an audit log that records who has downloaded and viewed each document. This feature is essential for demonstrating compliance to regulatory requirements or protecting intellectual property.