While Dropbox and Google Drive are great for sharing files, data rooms come with more advanced features. In contrast to the free file storage platforms that are designed for sharing files, these are designed to share files in a highly secure environment. They can also provide advanced security features, such as auditing, permissions and watermarking, which ensures that only authorized users can access and download the files needed.

A virtual dataroom permits both parties to perform due diligence, using an organized workflow for each document. This makes sure that confidential business information like patents, financial data, or product developments are only accessible to interested buyers and ensures that all conversations are kept within the platform. This helps to prevent leaks and decreases the risk of sensitive information being accessed by the unintentional hands of.

Other important features of a data room include activity audit logs, which provide an in-depth review of who has visited a specific document and when. This allows M&A team members to monitor interest levels, and decide whether to keep the negotiations going or continue with negotiations. Furthermore, data room reports aid in keeping teams organized by providing a summary of the activities of the group (e.g. Who has logged in, and who has viewed or edited what documents, and when?

A virtual data room lets users search through thousands of files quickly through a robust search engine. This includes full-text searching, Optical Character Recognition, filtering by label, a wide range of logical operators, and more. The ability to automatically number and index folders and documents helps to find and organize large amounts of data.