A data room is a secure online repository that allows teams to share documents and files in a more efficient manner than email. It is most commonly used in due diligence in an M&A however, it could also be useful when a company is looking to attract investors or to carry out other projects that require an extremely high level of security.
When it comes to M&A tendering, fundraising and restructuring projects, there is often a significant amount of confidential information shared between various parties. This makes it difficult to track who has accessed what information, which versions are used and the date of any changes. All the information you need can be stored in a dataroom, with access granted by an administrator. It’s a great solution to prevent unauthorised sharing of information and ensure compliance.
Virtual data rooms usually include several other features in addition to storage. These include drag-and drop and bulk upload capabilities, 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 provide redaction tools that permit users to remove specific parts of a document, without breaking the file as an entire. This can be especially helpful in avoiding missing one or multiple instances of sensitive information within a document that could have a significant impact on the outcome of the deal or project.