When it comes to high-stakes business transactions, making sure that all relevant information is reviewed is essential. It is often a matter of sifting through hundreds of thousands of highly sensitive documents. This is not only time-consuming but also poses serious security risks to the business. There is fortunately an easier method to manage this kind of document review. A data room could be a virtual or a physical space in which companies can store sensitive information and share it with authorized individuals. Data rooms are utilized for sensitive business transactions like mergers and acquisitions.
Although free or cheap tools like Dropbox, Google Drive and SharePoint are helpful for everyday file sharing, they do not provide the security or control necessary to enable due diligence and protect valuable documents. This could lead to the improper handling of important documents and create a compliancy risk that may derail an entire deal.
Luckily, there are dedicated online data room providers that can provide a safe and secure environment to share private information with other parties. These services are typically easier to use than physical data rooms and feature many other features that can streamline the sharing of data.
For instance, a data room may contain a drag-anddrop upload interface that allows users to upload large files with one click. Furthermore, advanced search capabilities ensure that any document can be retrieved quickly, even when it’s been uploaded in large quantities. Other features to consider include a customizable watermark that appears digitally over files every time they’re examined, downloaded or printed, and privacy settings that allow admins to set custom NDAs for every user.