A data room is an electronic space that secures sensitive and confidential documents. These are typically used to conduct due diligence in business transactions, IPOs, and court processes. Companies that require collaboration with multiple parties on shared projects also use data rooms.
In the past, physical data rooms were the standard method for conducting due diligence during a transaction. They were costly, and required a lot of planning to organize meetings in person. Due diligence is simpler and quicker when you use the use of a virtual room. Virtual datarooms are cloud-based tool for sharing files that lets users access files from anywhere around the world, without the need for an in-person meeting. Virtual data rooms have advanced features, including document tracking as well as version control and easy collaboration.
When you’re working on a merger and acquisition or raising capital, having all the necessary people in one place to review and sign documents is key. However, it can be time-consuming, inefficient, and incredibly frustrating. Email is a notoriously chaotic way to share documents. With attacks from phishing on the rise it’s more crucial than ever to adopt more effective methods of due diligence.
With PandaDoc you can set up your own data room in mere minutes and use it to improve your documentation process. You can upload and store any number of documents into a data room, then use guided signing to get signatures from all the parties involved in the process. Start today!