A data room is an online storage facility that provides a more efficient method of sharing files and documents than email. It is usually employed for due diligence purposes during an M&A. However it can also be beneficial for businesses looking to attract investors or for other projects that require the highest level of confidentiality.

When it comes to M&As, tendering fundraisers and restructuring projects, lots of confidential information is shared with several parties. This makes it difficult to keep track of who has accessed what, what versions are in use and the date of any changes. All the information you need can be stored in a dataroom, with access restricted by an administrator. It’s a great solution to stop unauthorised sharing of information and ensure compliance.

Virtual data rooms typically include various other features aside from storage. Drag-and-drop, bulk uploads optical character recognition (OCR) dynamic watermarking, and advanced search features can assist you in finding documents quickly.

Most data rooms have redaction tools as well as these features. These tools permit users to block only certain areas of a file without breaking the entire document. This is especially useful to ensure that no important information within the sites document which could have a major impact on the outcome of a project or deal.