When it comes to high-stakes business transactions, making sure that all relevant information is reviewed is essential. In most cases, this means going through tens of thousands of highly sensitive documents. This is not just a time-consuming process for the people involved, it also poses serious security risks for the business itself. Fortunately, there is an easier way to handle this type of document review. Data rooms can be a virtual or physical space where businesses can store sensitive data and share it with authorized individuals. Data rooms are often used in mergers and acquisitions tenders, capital raising and other sensitive business transactions.
Although free or cheap tools such as Dropbox, Google Drive and SharePoint are helpful for everyday sharing of files, they don’t provide the security or control necessary to allow due diligence and protect valuable documents. This could result in the mishandling of crucial documents and expose issues with compliance that could undermine an agreement.
There are data room online service providers who can provide secure, safe environment for sharing confidential information. These services are generally easier to use than physical data rooms and include a variety other features that can streamline the process of sharing data.
A data room, like could have a drag-and drop upload feature that allows users to upload large files in a single click. Advanced search capabilities enable documents to be quickly retrieved, even if they’ve been uploaded in huge quantities. Other important features could include a customizable watermark that appears digitally over documents whenever they are viewed, downloaded, or printed, and privacy settings that allow administrators to set custom NDAs for every user.