A data room is an environment that is secure and allows companies to share sensitive data during the M&A processes. The data room allows users an extensive set of permissions including security auditing, watermarking and security. There are a variety of free tools for file sharing, but they don’t offer the same level of functionality as a due diligence process. A data room creates an impression of professionalism and lets users track tasks, Q&A and document uploads.
Controlling a large amount of documents during due diligence can be difficult, particularly when reviewing documents with multiple stakeholders. A reliable dataroom can allow users to assign tasks to read and upload to both internal and external parties. Task recipients can track the progress of the task and be notified when the task is complete or close to completion.
Users can form groups with different access levels to ensure that all users are viewing only relevant files and documents – and can easily identify the specific information that is not available. Users can also quickly locate the information they need in documents with the help of a powerful search functions.
In addition, a robust redaction tool within the data room is a crucial feature, allowing for quick and efficient identification and removal of sensitive commercial data from documents. Users can easily remove images, text, and specific areas in documents with just a few clicks. This makes it easier to ensure that no information is accidentally disclosed. The data room also comes with a two-step authentication system with SMS code and password.