When it comes to sharing high-stakes documents, secure data rooms are the most effective way to ensure their security. These virtual spaces are utilized in M&A deals, IPOs, and other sensitive business transactions to keep and manage confidential documents.
Secure data rooms can be a great alternative to the traditional filing cabinet system. They permit multiple parties to look over due diligence documents at the same time without the need to create copies that can then be shared with others. This is a typical security risk. Fortunately, today’s VDRs can guard against this by using strong encryption of data during transit and at rest, custom watermarking to prevent unwanted duplicates or sharing and reports of user activity that allow you to track who has access to the files.
Choose a data room that is secure which offers more than basic capabilities. It should also have features that streamline due diligence and ensure conformity with standards and regulations. A secure data room, for instance, should have an intuitive and clear structure of the folder that reflects the specific transaction. It should also contain properly labeled files and subfolders to ensure that users can quickly find what they’re looking for.
A search feature that detects exact and partial matches is a useful feature. Some providers even support full-text search using optical character recognition for PDFs as well as images. They also have filters that allow you to narrow results based on file type and status, viewing activity, and many more. Additionally, you should look for a secure messaging tool which allows teams to communicate in real time. This is particularly helpful for M&A transactions, where an entire team might require discussing the project and its results in depth.