What Are Data Rooms?

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A data room is a secure online repository that lets teams share documents and files in a way that is more efficient than email. It is usually used for due diligence during an M&A. However it can also be beneficial in businesses that want to gain investors’ trust or other work related to projects that requires an extremely high level of confidentiality.

During M&A, tendering, fundraising and restructuring projects, there is often a lot of confidential information being shared between multiple parties. This makes it difficult to keep track of who has accessed what, which 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 avoid sharing that is not authorized and to ensure compliance.

Alongside storage as well as storage, there are a number of other features that are usually included in the majority of virtual data rooms. Drag-anddrop, bulk upload, optical character recognition (OCR), dynamic watermarking, and advanced search features can assist you in finding documents quickly.

Most data rooms offer redaction tools in addition to these features. These tools allow users to block only certain areas of a document, without breaking the entire document. This is especially useful in order to avoid missing a single or multiple instances of sensitive information in documents that could have a significant impact on the final outcome of the deal or project.

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