It is vital to look over every relevant detail when it comes to high-risk transactions. This often means sifting through many thousands of highly confidential documents. This is not just a time-consuming process for those involved, but it also poses significant security risks to the company itself. There is fortunately an easier way to handle this type of document review. A data room is a physical or virtual space where companies can store and share sensitive information with authorized individuals. Data rooms are commonly used in mergers and acquisitions tenders, capital raises and other business transactions.
While free or low-cost tools like Dropbox, Google Drive and SharePoint can be useful for daily sharing of files, they don’t provide the security and protection needed to facilitate due diligence and protect high-value documents. This can lead mishandling important documents and lead to compliance risks that could derail the deal.
There are data room online providers that provide a secure, secure environment to share confidential information. These services are often easier to use than traditional data rooms and include a number of additional features that can speed up the data sharing process.
For example the data room could include a drag-and-drop upload interface which allows users to upload large files in one click. Advanced search capabilities allow files to be easily retrieved even if they have been uploaded in large amounts. Other important features include a customizable watermarking system that is displayed digitally on documents when they are printed, viewed or downloaded, and privacy settings that allow admins to set up personalized NDAs for every user.