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What to Look For in a Financial Data Room

A financial data room is a secure file-sharing and storage platform used to safeguard sensitive information. It is utilized in M&As, IPOs and other investment banking procedures. The data stored in the virtual data room may range from private documents to spreadsheets and presentations. The people who are involved can edit and view documents while other parties only have access to read-only, which eliminates the possibility of information theft.

When choosing the right financial dataroom, pick one that comes with project management capabilities to streamline the deal-making as well as investor reporting processes. These tools will assist investors work with vendors and buyers and improve transparency during the entire transaction. It is also important to think about a flat rate pricing structure that eliminates the requirement for per-page pricing which can quickly become expensive during large transactions with multiple parties.

In addition to project management features, look for an accounting VDR with the ability to control version. This feature lets you determine who is able to view the most recent document, or allow users to have read-only access (without the possibility of making changes). This can speed up diligence significantly, and prevent confusion over what version of a document is being viewed at the moment. It is also beneficial to have a short message or commenting feature built into the software so that investors can easily send a message, or leave comments, without leaving the data room. Additionally, search for a virtual data room that provides real-time analytics. This can help identify the most popular documents as well as other areas of concern.