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Using Data Rooms for Due Diligence

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If you’re in charge facilitating due diligence and want to ease the burden on project participants, using a virtual data space could be the perfect solution for your company. There are a variety of providers on the market, so choosing the best one will take time and effort. It is crucial to choose one that offers an intuitive interface that is in line with your industry, and will be easy to use by all participants.

You should choose a dataroom with watermarks, or other security measures to guard against security breaches. Some providers offer the option to display a NDA (or Terms of Access) agreement to users prior allowing them to access uploaded files. A more efficient sign-off process is also a must-have option.

A well-structured folder structure is a different way to enhance due diligence. This involves making main folders to accommodate each type of file, level or security of the project, and subfolders which further divide the files into easily navigable sections. Choose a service that has auto-numbering and indexing features to keep the structure as well-organized as is possible.

You should also look for virtual rooms that offer different options for managing your files. For instance, iDeals’s virtual data rooms provide eight different permission levels to manage access to uploaded files. These include read-only download, fence view and editable Excel spreadsheets. The platform also provides 256-bit security encryption and remote shredding.