It is essential to scrutinize every relevant detail in high-risk transactions. Often, that means combing through hundreds of thousands of highly sensitive documents. This is not just an extremely time-consuming task and can pose significant security risks for the company. There is a simpler way to manage the review of documents of this type. A data room is a physical or virtual space that businesses can store and share sensitive data with authorized people. Data rooms are often used for sensitive business transactions like mergers and acquisitions.
While low-cost or free tools such as Dropbox, Google Drive, and SharePoint can be beneficial for sharing files on a daily basis but they don’t provide the security and control that is required for due diligence and secure high-value documents for business. This could result in improper handling of important documents and pose a risk of compliancy that may derail an entire deal.
Luckily, there are dedicated online data room providers who offer a safe, secure space for sharing private information with other parties. These services are usually easier to use than physical data rooms and feature various other features that will speed up the data-sharing process.
For example a data room can include a drag-and-drop upload interface that allows users to upload large files in just one click. Advanced search capabilities enable documents to be retrieved quickly, even if they’ve been uploaded in huge quantities. Other important features include watermarking that can be customized, which appears digitally on files when they are viewed, printed or downloaded, and privacy settings, which permit administrators to create customized NDAs for every user.
