Virtual data rooms are crucial for any business that deals with sensitive information. The most common use for such tools is in M&A deals to guard crucial information from unauthorized parties during due diligence processes. It’s not only M&A that requires a high level of protection. Intellectual property, like research results, patentable products and more, are often involved in projects that require documents.
When choosing a data room make sure it is suitable for your business and has the features you need. You should look for a provider that allows you to test their platform and ask questions prior to paying the subscription fee. Also, ensure that the price is affordable and based on the tools they provide.
Look for a virtual data room with a robust set of security features to ensure that only authorized users can access it. A strong two factor authentication (2FA) system is essential to prevent unauthorised sharing and a remote shred option which erases downloaded documents once an administrator revokes access is an excellent feature.
The top data room providers will be in a position to restrict access to a specific document, or even an entire folder within one document. They can also place an expiration date for documents to prevent downloads that are not authorized, and allow administrators to add customized watermarks to documents that will deter dubious intentions from users who are not permanent. In addition, they should be able to handle the majority of commonly used file formats, including PDFs and XLSXs.
