What Are Data Rooms?

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A data room is an online secure repository that lets teams share documents and files in a more efficient way than email. The most common use is during due diligence for an M&A however, it could also be useful when a company is seeking to attract investors or perform other work that requires an extremely high level of security.

In M&As, tendering, fundraising, and restructuring projects lots of confidential information is shared between different parties. It can be difficult to keep track of who has accessed which information, which versions are used and when modifications have been made. All the data you require can be stored in a dataroom, whose access is granted by an administrator. It’s a great solution to avoid sharing that is not authorized and ensure compliance.

Most virtual data rooms include a number of additional features that go beyond storage. These include bulk upload and drag-and-drop capabilities, automatic index numbering, optical character recognition dynamic watermarking and an advanced search tool that allows you to locate specific documents within a matter of minutes.

Most data rooms have redaction tools as well as these features. These tools allow users to selectively block parts of a file without breaking the entire file. This is particularly useful in order to avoid missing a single or multiple instances of sensitive information in documents that could have a significant impact on the outcome of the project or deal.

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