Data rooms let companies securely share confidential information with other parties without the requirement of paper or email. Virtual data rooms are a convenient and secure method for users to share files and documents regardless of whether it’s a business due diligence or transaction.

Data rooms are utilized in mergers and acquisitions transactions (M&As) to carry out due diligence by buyers and sellers. Both parties can effectively and efficiently communicate information by granting granular permissions for users and the ability to ask questions. Furthermore, they can help limit the number of people that see sensitive company information and data.

A quality VDR can make it simple for users to find the documents they require. If the virtual dataroom follows best practices, then it will have a clear folder structure with logical labeling to facilitate navigation by all involved. Furthermore, most providers offer collaborative features that allow several users to work on the same task in real-time.

A good provider will also provide a seamless experience to everyone regardless of the device or platform they use. They will support viewing of documents in their native format, include a scroll view feature to effortlessly navigate between pages, and enable single sign-on for all projects. The majority of providers will also offer educational centers to guide new users on how to make the most benefit from their platform. Some even have mobile apps Recommended Reading to increase accessibility and flexibility.