How it works in a data room
At closing, the room holds the full disclosure record plus Q&A, logs and user lists. The retention policy decides what happens next: which party keeps an archive, for how long, in what form, and when the provider must delete its copies. Many providers let administrators set a closure date, export a data room archive and then confirm deletion in writing. Losing bidders are normally required to destroy or return material under their NDAs, and access for them can be ended at once with remote shred where the platform supports it.
Why it matters in a deal
Keeping everything forever increases privacy and security exposure; deleting too soon can leave a party unable to defend a warranty claim. Typical retention periods follow the length of warranty and tax claims in the purchase agreement, often several years. Any open litigation or investigation overrides the normal schedule through a legal hold. Agreeing the policy before closing avoids rushed decisions later. The blog post on how long a data room stays open covers the lifecycle.
Example
After selling a software company, a Vancouver seller keeps an encrypted archive for seven years, matching its tax and warranty exposure. The buyer keeps its own copy. The provider deletes the live room 90 days after closing and sends a deletion certificate, which is filed with the transaction records.