What is company data room

A data room is a space used for storing information such as contracts or corporate documents typically with the intent to share that information in a secure and/or confidential fashion with others (such as with a potential acquiror). A data room can be physical or virtual.

How does data room work?

Traditionally, a data room would literally be an actual room full of documents. Businesses would use a room at their own headquarters, their lawyer's offices or a secure location like a bank where they could house documents and control access to them. Access to traditional data rooms is tightly controlled.

What should a data room include?

The Data Room is designed to provide easy-to-use procedures for all parties. The solution ensures rapid, transparent and secure information sharing in the event of, for example, Mɪmp;A transactions, restructuring, stock exchange listings, capital acquisition, procurements and outsourcing.

Why is a data room important?

An electronic due diligence data room, often referred to as a virtual data room, is essentially online cloud storage. They house a safe place for important data, such as documents and files, to be uploaded, shared, and stored. Data rooms used to be physical rooms where paper files were stored.