What Is a Due Diligence Data Room?

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Due Diligence Data Room, cloud-based platform which stores and exchanges sensitive information is a great way to store and transfer confidential information. It is often used in M&A, capital raising, IPO, and divestiture processes.

Due diligence is the method through which companies reveal their assets and businesses to potential buyers in the purchase contract. During the review parties exchange confidential information that must be secured for privacy reasons. The review often involves several experts from various disciplines who need to access, comment and update the documents. This means that the review can take time and be expensive. Virtual datarooms speed up the review process and reduces costs for all parties.

A good online due-diligence tool allows users to upload and organize their due-diligence data in folders. It also includes indexing tools and navigation features. It should also provide user activity monitoring that gives information about who has viewed what and when, and for how long.

Users should be able to import due diligence request templates that have already been developed. This will accelerate the process of responding to requests. They should be able set up their own groups, communicate with them and assign task roles and add additional users to the online data room. Idealy, they should be able to access the platform without having to download or install any software. The best due diligence data rooms offer the highest level of security and offer multiple layers of security. iDeals Solutions, for instance offers eight levels of granular authorizations and a range of security certifications.