While Dropbox and Google Drive are great for sharing files, data rooms have more advanced features. They are designed to allow sharing of files in an conditions that are extremely secure. They are able to provide advanced security features, such as auditing capabilities and watermarking, which ensures that only authorized parties can see and download the essential documents.
A virtual data room enables both sides to conduct due diligence by establishing a workflow for each document. This ensures that confidential information regarding business, such as patents or financial performance, is only seen by interested buyers. Any conversations are also kept in the platform. It also helps to avoid leaks and lowers the possibility of sensitive information falling into the in the wrong hands.
The logs of activity audits are another key feature of the data room. They give a complete look at who accessed a document and at what time. This lets M&A teams to keep track of the interest levels and decide if they want to pursue negotiations or move ahead. Additionally, reports from the data room help to keep teams organized by providing a summary of group activities (e.g. Who has logged in, and who has viewed or edited which documents, and when?
A virtual data room lets users search through a vast array of files by providing a powerful search engine. This includes full-text searches, Optical Character Recognition, filtering by label, a variety of logical operators and much more. Additionally, the capability to automatically index and number folders and documents makes organising and finding massive amounts of data an easy task.