A data room is an online secure repository that lets teams share files and documents in a way that is more efficient than email. It is most commonly utilized for due diligence during an M&A. However it can also be beneficial for businesses looking to attract investors or do other projects that require a high degree of confidentiality.

In the course of M&As and tendering, fundraisers and restructuring projects, the most confidential information is shared with different parties. This can make it difficult to keep track of who has accessed what information, what versions are being used and when changes were made. All the information you need can be stored in an information room, with access granted by an administrator. It’s an excellent way to stop unauthorised sharing of information and maintain the compliance.

Virtual data rooms usually include many other features, in addition to storage. Drag-and-drop, bulk uploads optical character recognition (OCR), dynamic watermarking and an advanced search feature can assist you in finding documents quickly.

In addition to these options and other features, a majority of data rooms offer redaction tools that allow users to remove specific parts of a document, without breaking the file as the whole. This is particularly useful in avoiding missing one or multiple instances of sensitive information within documents which could have a significant impact on the outcome of the deal or project.