---
title: "What Is Data Room? Private Equity Glossary | Capstreet"
description: "A data room is a secure online folder where a seller shares documents with buyers and their advisers during due diligence."
url: https://capstreet.multisites.ai/glossary/data-room
publisher: Capstreet
phone: +1-713-332-2700
contact: https://capstreet.multisites.ai/contact
---

Process

# Data Room

A data room is a secure online folder where a seller shares documents with buyers and their advisers during due diligence.

A data room is an organized, secure place for the documents a buyer needs to check. Most are online. You control who can open each folder, and you can see who viewed what.

For example, folders may cover finance, contracts, employees, insurance, legal matters and customers. A buyer asks for a lease, and you point to a file instead of searching email.

A clear data room speeds up [due diligence](https://capstreet.multisites.ai/glossary/due-diligence) and signals that you run a tight company. A messy one invites doubt, delays and requests for a lower price.

Build it before you go to market. Fill gaps, fix errors and keep names consistent. Share the most sensitive items late, after the buyer has shown real intent and signed an [NDA](https://capstreet.multisites.ai/glossary/non-disclosure-agreement).

Use the [due diligence checklist for owners](https://capstreet.multisites.ai/guides/due-diligence-checklist-for-owners) to see what buyers usually ask for. Related: [quality of earnings](https://capstreet.multisites.ai/glossary/quality-of-earnings).

[Read nextThe due diligence checklist for owners selling to private equity](https://capstreet.multisites.ai/guides/due-diligence-checklist-for-owners)

## Related terms

-   [Due Diligence](https://capstreet.multisites.ai/glossary/due-diligence)
-   [Non-Disclosure Agreement](https://capstreet.multisites.ai/glossary/non-disclosure-agreement)
-   [Quality of Earnings](https://capstreet.multisites.ai/glossary/quality-of-earnings)

## Ready to get started? Let’s talk.

Tell us about your company and what you want next. Conversations are private, and there is no obligation.

[Start a conversation](https://capstreet.multisites.ai/contact)

[(713) 332-2700](tel:+1-713-332-2700)[connect@capstreet.com](mailto:connect@capstreet.com)

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