Virtual data rooms are used by companies to share sensitive information within the context of an audit. It is a secure repository which allows multiple parties to look over data and share it without the risk of information being compromised. It is also easy to determine who accessed and modified certain documents. This is especially important for the banking industry, where compliance is an essential aspect.
M&A transactions are another important use of online data rooms. The selling party uploads all relevant information about their business into an online data room for the buy-side to review before making a decision on the transaction. This can speed up the due diligence process and cut down the time it takes to close a transaction.
Most often, engineering and manufacturing projects require collaboration between teams from different locations. Teams must collaborate to create a building, or provide services. Contracts and documents are frequently exchanged, and it is essential that they are accessible to all parties involved with the project. Online data rooms permit the sharing and distribution of sensitive documents during business transactions, which can increase productivity.
A secure online data room can be a perfect solution to manage the complexity of documentation during M&A or other financial transactions. It can be used to share and archive large files like PDFs, images and text. It features a flexible folder system that can be customized to each project, and allows for easy document sharing via drag-and-drop capabilities. Many data rooms come with comprehensive log-in and reporting capabilities that allow users to determine who has viewed or edited which document and when it was.
Source https://technoonline.net/everything-you-need-to-know-about-box-data-rooms/