While Dropbox and Google Drive are great for sharing files, data rooms have more advanced features. Unlike free file storage platforms which are not specifically set up to share files in a highly secure environment. They can also provide advanced security features, such as auditing, permissions and watermarking to ensure only authorized parties can view and download the needed files.
A virtual data room enables both parties to perform due diligence using a controlled workflow for every document. This ensures that confidential information regarding business, such as financial performance or patents, is only accessible to interested buyers. All conversations are kept in the platform. It also helps in preventing leaks and decreases the chance of sensitive information being accessed by the improper hands.
Other key data room features include activity audit logs which provide an in-depth view of who access to a particular document and when. This lets M&A teams to track the level of interest and decide whether to pursue negotiations or move on. Data room reports help teams stay organized by providing a summary of group activities. who has registered, who read and/or edited what documents and when).
A virtual data room lets users search through a huge number of files through a robust search engine. This includes full-text searches, Optical Character Recognition, filtering using labels, a variety of logical operators and much more. Additionally, the capability to automatically index and number folders as well as documents makes organizing and finding huge amounts of data an easy task.