When people think of data rooms, they’re probably thinking of the due diligence process for merger or acquisition (M&A) deal where both parties review the documentation that is critical to business. Data rooms are now used for more than just M&As. They can also assist with equity deals, fundraising and restructuring of companies.

There are a myriad of types of software solutions for data rooms, and it is crucial to choose one that suits your business. It should be simple to use and accessible from any place with secure logins and encryption technology. Tools to detect illegal downloads or access are also essential.

Another key feature is the ability to design a folder structure to match your project/due diligence requirements and quickly assign reading and uploading tasks for internal team members as well as advisers and third parties. Access permissions that are flexible and can be altered at the an individual level for both folders and documents are also beneficial. When it comes to the Q&A phase of a potential deal, you should look for an option that has an intuitive and efficient editing tool in the wiki style, which allows you to create notes only visible by you (and not anyone else).

The most reliable online data rooms provide data rooms a range of reports that provides administrators with a comprehensive view of user activities, from the number of documents looked at to whether they’ve been printed or downloaded. They should also permit users to export data in a secured format for later use if needed. Additionally, you should look for a company that provides continuous support for account management and technical issues that is available 24 hours a days all year long.