A data room is an electronic location that is secure and safe for confidential documents. These are usually used for due diligence during business transactions, IPOs, and court proceedings. Companies that need to collaborate with several parties on shared projects also utilize data rooms.
In the past physical rooms were the primary method of conducting due-diligence in a transaction. These were expensive and required a lot of planning to coordinate meetings in-person. Due diligence is much easier and quicker with the use of a virtual room. Virtual datarooms are cloud-based tool for file sharing which allows users to access documents from any location on the world, without requiring an in-person meeting. A virtual dataroom is equipped with advanced features, such as document tracking and version control. It also permits simple collaboration.
When you’re working on an acquisition or merger, or raising capital, having everyone together to review and sign documents is key. It can be difficult and time-consuming, as well virtual data room service as inefficient. Email is notoriously chaotic method to share documents. With increasing phishing attacks, it’s more important than ever to adopt more effective methods of due diligence.
With PandaDoc it is possible to create your own data room in mere minutes and use it to streamline the process of preparing documents. You can upload any number of documents to a dataroom and use guided signature to collect all signatures required. Start today!