A data room is an online storage facility that provides a better method to share files and documents than email. It is usually employed for due diligence purposes during an M&A. However, it can be useful in businesses that want to attract investors or for other project-based work requiring a high degree of confidentiality.
When it comes to M&As, tendering fundraising and restructuring projects lots of confidential information is shared with view it different parties. It can be difficult to track who has accessed what information, what versions are used and when changes have been made. With a data room, all the information needed can be stored in one place with access controlled by an administrator. It’s a great way to prevent unauthorised sharing of information and to ensure compliance.
In addition to storage, there are a variety of other features that are included with most virtual data rooms. These include drag-and-drop and bulk upload capabilities, automatic index numbering, optical character recognition, dynamic watermarking and an advanced search tool that helps locate specific documents in just a few seconds.
In addition to these features and other features, a majority of data rooms offer tools for redaction that permit users to remove specific parts of a document without breaking the document as a whole. This is especially useful for avoiding accidentally missing single or multiple instances of sensitive information in a document, which could have a major impact on the outcome of the transaction or project.
