A data room is an online, secure repository that allows teams to share documents and files in a more efficient way than email. It is typically used to conduct due diligence in an M&A. However it can also be beneficial for businesses looking to attract investors or do other project-based work requiring security and confidentiality.
In M&A, tendering, fundraising and restructuring projects, there’s usually an abundance of confidential information being shared between various parties. This makes it difficult to track who has accessed what, which versions are in use and the date of any changes. All the data you require can be kept in the dataroom, and access managed by an administrator. It’s a great solution to stop unauthorised sharing and ensure compliance.
Alongside storage, there are a variety of other features that are included in the majority of virtual data rooms. These include drag-and drop and bulk upload capabilities including automatic index numbering optical character recognition dynamic watermarking and an advanced search tool that will help you locate specific documents within a matter of minutes.
In addition to these features in data rooms, many offer redaction tools that allow users to selectively block out parts of a document, without breaking the file as the whole. This can be particularly helpful in avoiding missing one or multiple instances of sensitive information in documents which could have a major impact on the outcome of the deal or project.