For significant events like mergers and acquisitions, tenders, and capital raising, getting all the facts requires combing through tens of thousands of highly confidential documents. Unfortunately, in the past physical files were the only option to examine all the information needed.

The positive side is that modern due diligence data rooms make it easier for interested parties to work on files at the same time without putting their security at risk or having their private information exposed accidentally. If you’re comparing different providers, how can you tell which are worth the cost? Find a blend of advanced and basic features. Look for a user-friendly interface that encourages collaboration and keeps everybody on track, and look for smart tools such as personally-identifiable watermarks, a unique document tracking mechanism perfect for M&A due diligence processes, and a full audit trail of all file activity.

A crucial feature to look for when evaluating a project is the ability to tailor access rights for different groups of users. This lets you assign read, download, and print privileges for specific participants within the project. This will ensure that sensitive documents are secured from malicious external activities or internal errors, as well as accidental exposure.

The most effective online data room software allows you to create detailed reports on the entire file activity within your project, such as who viewed what files, who took which actions with which files, and how often certain files were printed or downloaded. With this information you can have a clear picture of your due diligence data room use and make the most of the tool for future projects.

aspects considered by venture capitalists when evaluating a firm for investment