While Dropbox and Google Drive are great for sharing files, data room storage has more advanced features. As opposed to free file storage services they are designed to share files in a secure environment. They can also provide advanced security features, such as auditing, permissions and watermarking that guarantees only authorized parties can view and download the necessary files.
A virtual data room allows both parties to perform due diligence by establishing a workflow for every document. This ensures that confidential information about business operations, such as patents or financial performance is only accessible to interested buyers. All conversations are kept in the platform. This helps to prevent leaks and also reduces the risk of sensitive information being accessed by the improper hands.
The audit logs for activity are another key feature of the data room. They provide a comprehensive review of who accessed a document and at what time. This allows M&A team members to keep track of interest levels, and decide if they want to continue or move on with negotiations. In addition, data room reports aid in keeping teams organized by providing a summary of the activities of the group (e.g. who has been logged in, who looked at and/or edited which files and when).
A virtual dataroom enables users to swiftly sort through thousands of files using a powerful search engines. This includes full text search, Optical Character Recognition (OCR) filters based on labels and a range of logical operators, and much more. Furthermore, the ability to automatically index and number folders and documents makes searching and organizing huge amounts of data a breeze.
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