A data room is a safe online repository of business documents and files. The majority of the time, they are utilized for the due diligence process for an upcoming deal, but technological development and remote working mean they are being utilized across the full business lifecycle from divestitures and fundraising to internal file sharing and storage.

It is essential to take some time in the planning phase in order to determine how you intend to use your data room and what features are most beneficial for your business. This will help avoid any unforeseen costs or wasted effort and ensure that the appropriate level of functionality is available to meet your needs.

Choosing the right data room service will also save your time and money. Virtual data rooms are less costly to run than physical rooms, since you don’t need to pay for a secure facility or for security companies to monitor it at all times. Furthermore, if you’re dealing with an abundance of users spread across a variety of time zones and locations, it is important to choose a service which provides 24/7 support to ensure your staff can get the assistance they need when it is most needed.

Another feature to look out for is the capacity to easily access reports on user activity – who has seen which documents, when they accessed them, and whether they downloaded or printed them. These reporting tools are useful from a management and security perspective because they provide an overview of the activities of users that can be used to help inform future data room planning and implementation.