Whether it’s for merger and acquisition due diligence or tendering for capital raises, having all the facts prior to making crucial decisions requires searching through tens of thousand of confidential documents. The right information available to the right people at the right time can significantly expedite the process of transactions and minimize risks. However, this information isn’t easily accessible and is frequently hidden behind inconvenient file sharing software that lack the auditing capabilities, document-specific permission settings and dynamic watermarks that are required for strategic business transactions.
Data room management software is a superior alternative. It provides a top down approach to organizing files. Users can organize documents into folder structures that are easy to navigate, based on the type of information being shared, or project phase. Many providers also allow users to search files according to a variety of criteria such as keywords and optical character recognition (OCR).
Another major feature is the ability to share and view documents in high-definition. This ensures that all parties are able to see the data clearly, regardless of the device they’re using. Typically software for managing data rooms will also allow high-level security settings to control who is able to print, download, and view documents within the virtual data space.
Some providers will offer an individual plan based on the specifics of an acquisition, while others specialize in specific industries or provide tools for M&A due diligence. For example, Firmex is a specialized platform that is used by legal and financial service companies for complex processes like compliance or litigation as well as diligence.