A data room is a secure digital space that holds sensitive documents, confidential information and documents. These are often used for due diligence in business transactions, IPOs, and court proceedings. Data rooms are also used by companies who need to collaborate on collaborative projects with multiple parties.
In the past physical data rooms were the primary method of conducting due diligence on a business transaction. They were costly and required a lot of planning to coordinate in-person meetings. Due diligence is simpler and faster with the help of a virtual dataroom. A virtual data room is a cloud-based file sharing tool that allows users to access files from anywhere in the world, without the need for an in-person meeting. A virtual data room is equipped with advanced features like document tracking versions control, document tracking, and easy collaboration.
If you’re planning an acquisition or merger or raising capital, getting all the relevant people together to sign and review documents is key. However, it can take a long time, is inefficient, and incredibly frustrating. Email is a notoriously chaotic method of sharing documents. With increasing phishing attacks, it is more important than ever to switch to a better due diligence approach.
PandaDoc allows you to create a dataroom in just minutes, and simplify your documentation. You can upload and save any number of documents into an data room, and use guided signing to collect signatures of all the parties involved in the process. Start today!