In high-risk business transactions, ensuring all relevant information is reviewed is vital. This could mean sifting through thousands of highly-confidential documents. This is not only an extremely time-consuming task and can pose significant security risks to businesses. There is a simpler way to manage reviews of documents like this. Data rooms are virtual or physical space where companies can store and share sensitive data with authorized individuals. Data rooms are usually used in mergers and acquisitions tenders, capital raises as well as other business transactions.

Although free or low-cost options such as Dropbox, Google Drive, and SharePoint are useful to share files but they lack the level of security and control needed to allow due diligence and secure high-value business documents. This could lead to the improper handling of important documents and pose a risk of compliancy that may derail the entire transaction.

There are data room online providers that provide a secure and safe environment to share sensitive information. These services are often simpler to use than traditional data rooms, and feature a variety of other features that can help streamline the process of sharing data.

For example a data room can contain a drag-anddrop upload interface that lets users upload large files with just one click. Furthermore, advanced search capabilities ensure that any document is easily retrieved, even if it’s been uploaded in large quantities. Other features that are important include watermarking that can be customized, which appears digitally on files when they are viewed, printed or downloaded. Also, there are privacy settings, which allow admins to set up custom NDAs for each user.