A data room is a safe digital location that houses sensitive documents, information, and confidential documents. They are used to conduct due diligence in business transactions, IPOs and court proceedings. Data rooms are also employed by companies who need to collaborate on projects that are shared with several parties.
In the past, physical data rooms were the standard method for conducting due diligence during a business transaction. They were costly and required lots of planning to coordinate in-person meetings. With the use of a virtual data room due diligence is quicker and more efficient. 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. A virtual dataroom has advanced features like document tracking and version control. It also facilitates simple collaboration.
It’s essential to bring all the right people together in one location, whether you’re attempting to make an acquisition or raising money. It can be frustrating, time-consuming and inefficient. Email is notoriously unorganized way to send documents, and with attacks from phishing on the rise it’s more crucial than ever to switch to a better approach to due diligence.
With PandaDoc you can build a data room in minutes and use it to simplify the process of preparing documents. You can upload and store any number of documents within the data room and use guided signing to collect signatures from all the parties involved in the process. Get started now!