https://psiphon.win/are-traditional-document-storage-methods-still-viable-for-due-diligence/
Data rooms are a better choice for sharing confidential business data with third-party partners than the free file-sharing services such as Dropbox or Google Drive. They offer an intuitive user interface, flexible branding and support for integration with existing IT systems and workflows. They also come equipped with important security features, such as the ability to grant granular access, audit trails, fence view and watermarking that are crucial for ensuring conformance with industry regulations and privacy laws.
It is essential to have tools that allow users to navigate large volumes of documents quickly, and locate the files that they need. They include folder structure, clear name convention, indexing and version control, which allows users to find documents by referencing keywords or metadata. They can save time and effort by automating the process of naming index numbers. This creates a clear map for users to follow when reviewing the files.
Data rooms can make the process of reviewing documents not just for investors but also other interested parties. Multiple users can read, view and comment on documents in real-time with parallel document viewing as well as annotation features. This speeds up turnaround time for documents and improves productivity.
A virtual data room can also improve communication with all stakeholders. It permits the creation of a Q&A arranged by topic, which records questions and answers and also tracks outstanding issues. This helps both the seller and buyer to resolve any misunderstandings effectively and avoids information being lost in the process.