What Are Data Rooms?

A data room is an online, secure repository that allows teams to share documents and files in a more efficient way than email. Most often, it is used to conduct due diligence for an M&A but it can be beneficial when a business is looking to attract investors or to carry out other work that requires a high level of confidentiality.

During M&As, tendering, fundraising and restructuring view it projects, many confidential information is shared among different parties. It can be difficult to track who has accessed which information, what versions are being used, and when changes have been made. With a data space, all the data needed to be stored can be kept in one location, with access managed by an administrator. It’s a great solution to prevent unauthorised sharing of information and to ensure the compliance.

Alongside storage and storage space, there are a myriad of other features that are usually included with most virtual data rooms. Drag-and-drop, bulk uploads, optical character recognition (OCR) dynamic watermarking, and advanced search features can aid in finding documents quickly.

The majority of data centers offer redaction tools in addition to these features. These tools permit users to block certain parts of a document without destroying the entire file. This is especially useful to ensure that you don’t miss important information within the document which could have a significant impact on the outcome of a deal or project.