webdatahub.org/3-risk-factors-in-buying-another-company
A data room is an online repository that allows multiple parties to share confidential files and documents. They are used in a variety of business transactions, such as mergers and acquisitions (M&A) as well as fundraising, IPOs, and legal proceedings. Be aware of how you intend to use your data room to make sure it is able to meet your requirements.
It’s a good idea to conduct a brief survey prior to you start building your data room to identify the kinds of documents and files that will be stored there. Some companies may already have taken the precaution of digitizing their sensitive files and will have to upload them to the data room. In this scenario creating the data room is quite simple. However, for others who are just starting out, it will be necessary to spend some time organizing files and documents before uploading them to the data room.
When deciding on a provider, take into consideration their features and pricing model. Some providers focus on a user-friendly interface while others offer a more technical feature set that could take some time to learn. It’s also important that you choose a vendor that offers various pricing options, like per-storage, per-page and per-user as well as flat fees.
Find a dataroom which allows access rights to be assigned at the document level, rather than a group or folder-level. This will ensure that information is not leaked, and allow for granular control of who sees what. Certain data rooms also offer the option to apply dynamic watermarks to documents. This can discourage recipients to send documents even after they’ve been downloaded. This also helps to prevent accidental disclosure.