A data room is an electronic space that permits companies to store, review, and share sensitive documents. It is a central place that is enhanced with security features, such as firewalls, encryption and backups, as well as collaborative tools to streamline review and discussion of documents.
A data room can cut costs by eliminating the need to transport and physically handle documents. It also improves transparency and accountability by recording of user activity as well as audit trails. It also helps businesses prevent data breaches, by ensuring that information is protected and only accessible to authorized users.
A virtual dataroom can be a powerful tool to negotiate an acquisition. It provides the buyer with an accurate view of a company's financial and operational status. It also proves that the seller has conducted their due diligence, and can make it easier to manage the process. It also helps make the process easier by making collaboration easier between teams, facilitating communication. The top VDRs have a variety of advanced features that allow users to alter the look and feel of their online document repository. These include fence view and redaction. Redaction blacks out areas of a file so that personally-identifiable information stays private, while fence view blocks viewing and preventing screenshotting. Other useful features include a dynamic watermark which can be set to display at document opening or download. Some providers also provide various additional security certificates, such as ISO 27001, SOC 1/2/3 GDPR, and HIPAA.