It is vital to look over every relevant detail in high-risk transactions. In most cases, this means going through tens of thousands of highly sensitive documents. This is not only an expensive process however, it also poses significant security risks for the company. Luckily, there’s an easier way to handle this type of document review. A data room is a virtual or physical space where businesses can store and share sensitive information with authorized people. Data rooms are often used in mergers and acquisitions, tenders, capital raising, and other sensitive business transactions.

While free or low-cost applications like Dropbox, Google Drive, and SharePoint can be useful for file sharing on a regular basis, they don’t offer the security and control that is required to facilitate due diligence and secure high-value documents in the business. This could lead to mishandling crucial documents and expose issues with compliance that could undermine the sale.

Luckily, there are dedicated online data room companies that offer a safe, secure space for sharing confidential information with external parties. These services are generally easier to use than physical data rooms and feature a a fantastic read variety other features that will speed up the process of sharing data.

For example, a data room may contain a drag-anddrop upload interface that allows users to upload large files in just one click. Advanced search features allow documents to be easily retrieved even if they’ve been uploaded in large numbers. Other key features might include customizable watermarking that shows digitally over files every time they’re seen, downloaded, or printed, and privacy settings that allow admins to create customized NDAs for each user.