Due diligence for mergers and purchases involves sharing sensitive documents with several stakeholders. These files must be protected from theft, unauthorised access, or leaking. Virtual data rooms permit users to connect remotely, allowing them to streamline the process. They also facilitate due diligence process by letting users to search for and retrieve documents in mere seconds.
The structure of the folders in the virtual data room is designed to make it easier for users to navigate and comprehend. For instance, most VDRs use a top-down approach that separates the files into main folders which correspond to different types of information or deal stages. They then subdivide these folders into more useful subfolders for easier searching and viewing.
Most virtual datarooms have granular settings for permissions that allow users to choose which files they can view and for how long. These settings help to prevent important files from falling into wrong hands, a costly mistake that could ruin the entire transaction. Combined with audit logs, this functionality provides double safety for your sensitive files.
Other security options include dynamic watermarking which displays an alert message or document status (for instance confidential) on the file. This feature also displays the user’s name and IP address, as well as the date and the time they were viewing. When choosing a provider of a secure dataroom, you need to take these aspects into consideration. A reputable company will have at least one capability and be able to work with various formats of files.