A data room is an online storage facility that provides a more efficient method of sharing documents and files than email. The most common use is during due diligence during an M&A however, it could also be beneficial when a business seeks to attract investors or to carry out other project-based work that requires the highest level of confidentiality.

In M&A, tendering, fundraising and restructuring projects, there is often a lot of confidential information being shared between various parties. This can make it difficult to keep track of who has accessed what information, which versions are being used and when changes were made. With a data room all the required information can be stored in a single location with access granted by an administrator. It’s a great way to stop unauthorised sharing and also to help ensure compliance.

In addition to storage There are a range of other features that are included with most virtual data rooms. These sites include drag-and drop and bulk upload capabilities and automatic index numbers, optical character recognition, dynamic watermarking and an advanced search tool that can help locate specific documents within a matter of minutes.

Most data rooms offer redaction tools in addition to these options. These tools allow users to block only certain areas of a file, without breaking the entire document. This is particularly useful in avoiding missing one or multiple instances of sensitive information in the document that could have a major impact on the final outcome of the project or deal.