A Data Room is an online platform that allows you to store and share confidential documents and files during corporate transactions. It also aids in your daily processes. Companies must ensure that their Data Room provides all the capabilities, in accordance with the highest standards, that meets their requirements for business and guarantee that they are able to securely keep and share sensitive data with their partners outside.
A good data room should facilitate collaboration between all parties, and provide a full reporting and logging functionality to give insight into who has access to the data and how. In addition, it must be secure. The most secure data rooms have encryption at rest and while in transit, two-factor authentication, audit trails of user activity and security measures to block unauthorised access and malware from malicious third party.
Different industries have their own specific regulatory compliance requirements and a data room must be designed with these requirements in mind. The provider should be familiar with the industry and explain how their product can be utilized to help meet compliance requirements.
Additionally, the platform should be easily adaptable and flexible to fit the company’s internal processes and workflows. This is particularly crucial when working on large-scale deals in which the platform is used to manage large numbers of documents and other stakeholders. Some of the most well-known and reputable data room providers, like Intralinks and FirmRoom are well-known for their ability to adapt to large-scale deals with their advanced features.