A data room is a secure online repository that allows teams to share documents and files in a more efficient manner than email. Most commonly used during due diligence for an M&A but it can be beneficial if a company is looking to attract investors or perform other work that requires the highest level of confidentiality.
In the course of M&As and tendering, fundraising, and restructuring projects a lot of confidential information is shared between different parties. It can be difficult to keep track of who has accessed which information, what versions are being used, and when modifications were made. All the information you require can be kept in a dataroom, whose access is restricted by an administrator. It’s a great method to avoid sharing that is not authorized and to ensure compliance.
Virtual data rooms usually include many additional features that go beyond storage. These include bulk upload and drag-and-drop capabilities including automatic index numbering optical character recognition dynamic watermarking and an advanced search tool that can help locate specific documents in a matter of seconds.
In addition to these options in data rooms, many offer redaction tools that allow users to remove specific parts of a document, without breaking the document as an entire. This can be particularly helpful in avoiding missing one or multiple instances of sensitive information within the document which could have a significant impact on the final outcome of the deal or project.
