GuidesData roomDennis Raisich
Data room for due diligence
A data room is the secure place where the seller provides the documents for due diligence. Today it is almost always virtual: bidders and advisors read the documents online, each role only sees what has been released to it, and every access is logged.
In short
- A good data room follows the request list, has clear roles and logs every access.
- Questions and answers belong in the data room, linked to the document.
- The seller releases downloads deliberately, and confidential documents only late in the process.
- For lawyers, accountants and many companies, where the data is stored is a compliance matter.
What does a data room have to do?
- Structure. An index with numbered sections that follows the request list.
- Permissions. Each role only sees the documents released to it.
- Audit log. Who opened or downloaded which document, and when?
- Questions and answers. Bidders’ questions and the seller’s answers stay linked to the document.
- Search. In scans too, so no one has to open a hundred files one by one.
Who works in the data room?
| Role | What they do | What they see |
|---|---|---|
| Seller | Uploads documents, answers questions | Their own data room |
| Bidder | Reads, asks questions | What has been released to them, downloads only with permission |
| Specialist | Reviews one area, such as tax | The documents for their area |
| Observer | Follows along | What has been released |
Which mistakes cost time?
The most common mistake is a data room that starts out as plain file storage: folders copied from the seller’s own drive, several versions of the same file, scans without readable text. Bidders lose time, and every unclear point turns into a question. Documents that are open too widely too early are just as tricky, such as the salaries of individual employees or contracts with terms that a bidder who is also a competitor shouldn’t see. Sellers usually release such documents only late and only to a small circle.
Where is the data stored, and how secure is it?
A data room contains trade secrets and personal data. So check where the database and files are stored, who at the provider has access and whether the data is used for other purposes, such as training AI models. Lawyers and accountants are also bound by professional secrecy, and data protection under the Swiss Federal Act on Data Protection (FADP) or the GDPR applies to everyone.
Data room and analysis in one place
Traditional data rooms store and display documents. The review happens somewhere else. With majiq, the data room is part of the due diligence platform: sellers, bidders and specialists work in the same data room, and each role has its own permissions and only sees the documents you release. You decide whether bidders can download. Every view and every download is logged, and questions and answers stay linked to the document. At the same time, majiq reads every document and checks it in context. The database and files are stored in Switzerland.
Frequently asked questions
What is the difference between a virtual and a physical data room?
A physical data room is a room with binders that bidders visit at set times. A virtual data room is a secure platform on the internet. It is the norm today because several bidders can review at the same time and every access is logged.
How long does a data room stay open?
During the due diligence and the negotiations. After that, it is closed and often archived, so there is a record later of what the buyer saw.
How do data room providers charge?
Depending on the provider, by data volume, number of pages, users or duration. Check what an extension costs, because deals often take longer than planned.
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As of November 5, 2026. This article is a general overview and does not replace advice on a specific case.