Due Diligence Data Room is cloud-based platform that is used to store and exchange sensitive data. It is frequently used for M&A transactions and capital raising IPO and divestiture procedures.

Due diligence is the method that companies use to disclose their business and assets to prospective buyers in a purchase contract. During the review process parties exchange confidential documents that must be kept secret for reasons of privacy. The review is usually conducted by a group of experts from various disciplines who need to access, review and update the files. This is why the review can take a long time and be expensive. A virtual dataroom simplifies the review process and reduces costs for all parties.

A reliable online tool for due diligence lets users upload and arrange their due diligence documents in folders, and includes indexing tools and other navigation features. It should also incorporate user activity monitoring that gives information on who viewed what, and when, as well as for how long.

Users should be capable of importing pre-designed due diligence request templates, which can speed up the completion of requests. They should be able to create their own groups, communicate and assign roles to tasks and then add more users to the online data room. The ideal scenario is that they be able to access the platform without needing to install Due Diligence Data Room or download any software. The best due diligence data rooms provide high-grade security practices and multiple layers of security. iDeals Solutions offers, for instance, eight levels of granular access and a variety of security certifications.