Data Room plays an important role in collecting, processing, and analyzing information and on this basis making management decisions. In this article, more about its functionality.

Digital Data Room in Due diligence process

International integration processes, business transparency significantly transform, reorient, complicate the requirements for the management system of business entities. The quality of business management largely depends on the reliability of information and analytical support of the management process.

Due diligence is an ancillary audit service that includes a complete study of the enterprise, based on the analysis of quantitative and qualitative indicators of the entity, as well as the system of management and internal control.

Due diligence is a thorough study of key tax issues, contingent liabilities, risks. Usually, this procedure is carried out when the company changes ownership, the partners enter into agreements to invest large sums of money, there is a merger of companies, the acquisition of small companies by large ones.

The specific type of procedure depends on the customer of the procedure (buyers, investors, banking institutions, business owners, etc.) and the executor (lawyers, financial analysts, auditors, appraisers, consulting firms, etc.).

The effectiveness of data room due diligence is that the implementation of this procedure allows:

  • objectively assess the real financial condition of the business entity;
  • clearly identify tax risks, including those characterized by latency;
  • create a reliable information platform for realistic planning of the tax burden;
  • to develop a system of recommendatory measures, the implementation of which in practice will ensure the maximum reduction of the negative impact of tax risks on the activity of the business entity.

Access to the Data Room due diligence

In relation to the procedure, you can grant the right to execute. In this case, you do not need to worry about allocating access rights to objects processed by the procedure – their presence is not required. Thus, Virtual Data Room procedures are a convenient means of providing controlled access to perform well-defined actions on data.

Access to the storage as a whole can be granted by its administrator or by a user with the security privilege. These “rights” actually set a number of restrictions on the use of the database, that is, they are in fact prohibitive. This means limiting the number of I/O operations or the number of rows returned by one query, limiting the right to create tables and procedures, etc. By default, the user is not limited to quantitative limits and receives the right to create objects in the database.

Note that when a Data Room is created, its status is indicated – general or personal. This affects the implied database access rights. By default, the right to connect to the shared database is granted to everyone. The right to connect to a personal Data Room must be transferred explicitly. The right to connect is required to perform all other operations with the database and the objects contained in it.

By default, all users have the right to create procedures in the databases. If at the same time they automatically received the rights to execute, they could carry out, in essence, any operation with the data, since the execution of the procedure does not require access rights to the objects being processed.