A data room is a secure digital location that houses sensitive confidential documents and data. These are usually used for due diligence in business transactions, IPOs, and court processes. Data rooms are also used by companies who need to collaborate on projects that are shared with several parties.
In the past physical rooms were the primary method of conducting due-diligence in the course of a transaction. These were expensive, and required a great deal of planning to manage meetings in person. Due diligence is easier and quicker when you use the use of a virtual room. A virtual data room is a cloud-based file sharing tool that allows users to access files from anywhere in the world, without the need for an in-person meeting. A virtual data room comes with advanced features, including document tracking, version control, and simple collaboration.
If you’re working on a merger and acquisition or raising capital, having everyone in the same place to sign and review documents is essential. It can be a hassle slow, inefficient and time-consuming. Email is a notoriously messy method of sharing documents. With an increase in phishing-related attacks and increasing, it is more crucial than ever that you switch to a better due diligence approach.
With PandaDoc it is possible to create your own data room in mere minutes and use it to speed up the process of preparing documents. You can upload and store any number of documents in an data room, and use guided signing to collect signatures from everyone involved in the process. Get started today!