When it comes down to high-risk business transactions, ensuring that all pertinent information is scrutinized is critical. It is often a matter of sifting through hundreds of thousands of highly secret documents. It’s not just a time-consuming procedure for those involved, but it also poses significant security risks for the business itself. Fortunately, there is an easier way to handle this type of document review. Data rooms are virtual or physical space where businesses can store and share sensitive information with authorized people. Data rooms are typically used in mergers and acquisitions tenders, capital raises, and other sensitive business transactions.

While free or inexpensive tools like Dropbox, Google Drive and SharePoint are helpful for everyday sharing of files, they don’t provide the security and protection required to ensure due diligence and protect the most valuable documents. This can lead mishandling important documents and expose compliance risks that could derail a deal.

Luckily, there are dedicated online data rooms that can provide a safe, secure space for sharing private information with other parties. They are usually more simple to use than the way to save budget with data room provider comparison physical data rooms and feature several other features that can streamline the sharing of data.

For example, a data room may have a drag-and drop upload interface that lets users upload large files with just one click. Advanced search features allow documents to be found quickly even if they have been uploaded in large quantities. Other key features include customizable watermarking that appears digitally on files whenever they are printed, viewed, or downloaded, and privacy settings, which enable administrators to set up customized NDAs for every user.