When a company or an individual must keep documents safe and accessible for review by prospective buyers, it might make sense to consider an in-person data room service. As opposed to the more basic file sharing services, which aren't intended for such large-scale document reviews, and may not protect against hacking and leaks, professional data rooms provide multiple layers of security, such as multi-factor authentication, customized NDAs, granular indexing system and auto-indexing. They also have a graphical wall view, dynamic watermarking. They also have a set session timeout.

In mergers and acquisitions Companies are typically required to share huge amounts of confidential documents with a number of bidders. A virtual dataroom can make this process much easier, quicker and more efficient by allowing bidders to access documents without having to visit the offices of the seller. This can also expedite the process and decrease the chance of mistakes in communication.

A local data room service should have a flexible pricing plan and a user-friendly interface that's easy for both the accountant and the CFO to understand. It should also include different deployment options and a single sign-on in addition to the option to personalize the logo along with the terms and conditions and general appearance of the data room. It should also be compatible with desktop and mobile devices, with a drag-and-drop upload function and advanced search capabilities, OCR functionality, and a wall-view with graphical graphics and dynamic watermarking. It will also allow users to configure their own permission settings for viewing download, printing and viewing files and track their activities with customizable reports on user activity.