How to Select a Virtual Data Room Service

12/10/2020 Image
A data room is a virtual space where you can exchange confidential documents and other sensitive information, such as financial statements, contracts, intellectual property details, employee details, etc. No more lost or improperly filed paper documents, and forget the risks that come with sending data via email - you can share data with clients and employees internationally in a safe environment. Service providers have high tech security settings in place to make sure no unauthorized persons can access stored information.

According to Forbes, using a data room is also critical when going through an acquisition and merger processes. 

However, you'll need to choose the best data room service provider for your document storage needs. This may be confusing at first, because there are many service providers that offer data room services. Based on high-quality examples, like the Firmex Data Room, we're going to help you figure out what kind of data room you should look out for.

Here are three things to consider when looking for a data room service.

1) Safety


The security of your confidential documents is of utmost importance, so this is your top concern when selecting a data room company. An established service is more likely to have better software in place to secure documents than newer companies.

Suppose information is not highly protected and unauthorized persons get hold of documents; it could cause havoc and put your company at risk . It can cause problems with a particular transaction, your business relationships, with the establishment you are transacting with, and untold damage if the information be leaked to the wrong hands.

Make sure you look into a company’s protection records, so you know what the chances are of a document security breach. When vetting a data room, look for the use of effective security features such as Two Factor Password Verification, tailored DRM, and HIPAA and SOC 2 conformity.

2) Pricing


Any company will want to save money wherever possible, so check carefully on data room pricing. You want to look for price plans and subscription services, or upfront quotes from a representative. 

Many data rooms do not state their prices outright and tend to charge larger, more affluent companies with inflated prices. It's possible that you'll pay a monthly fee for the account, but you'll get charged extra for a certain amount of pages or documents.

Make sure you ask about what exactly the services will include and what you will be paying for. Ask data room providers about data superfluity charges, and if there are any hidden costs.

Some service providers offer free or very reasonable prices. Do not be lured in by this as their security features and quality of service may not be up to scratch, or there may be hidden costs.

3) Complimentary Trial Period


A lot of service providers offer free trial periods, which may help you to choose the right one. Just be aware that you may not be able to use all features on the free version. Ask service providers what level of functionality their free trial activates.

Everyone’s Data Room Needs are Different


The need for a data room virtual space is often very individual. When looking for the right service provider, make sure to check that they will be able to meet your service needs and expectations through the following steps:

- Read about their services carefully on their website.

- Go through their tutorials or demonstration videos on their sites.

- Check out company FAQ pages.

- Look for and read user reviews.

- Contact the establishment directly and ask them questions surrounding your needs.

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