A data room is an online repository for business documents and files which are securely shared with third-party organizations. Most commonly, they are used to aid in the due diligence phase of the potential acquisition, but the technical development and remote working mean they are increasingly being used throughout the entire business lifecycle from divestitures and fundraising, to internal file sharing and storage.

It is important to take some time during the planning phase to evaluate how you intend to utilize a data room and which features will be most beneficial to your business. This will help avoid unexpected expenses and unnecessary effort and ensure the right level of functionality available to meet your specific requirements.

You will also save time and money by selecting the right provider for your data room. Virtual data rooms are less expensive to manage than physical rooms, since you don’t need to pay for a secure facility or security firms to monitor it at all times. Additionally, if you have a large number of users from a variety of locations and time zones, it’s important to choose a vendor with 24/7 support, so your team members can receive the assistance they need when it matters most.

Another key feature to look for is the ability to easily access reports detailing the user’s activity, including who viewed which documents, when they visited them, and whether they printed or downloaded them. These reporting tools are useful from a management as well as security perspective because they provide an overview of user activity that can be used to inform the future data room design and implementation.

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