A virtual data room provides an encrypted platform for sharing files. It is able to archive documents for a prolonged time and allows users to work on documents simultaneously. It also has security features like password protection, audit logs, and file version control.
Typically, businesses involved in M&A due-diligence use a VDR. This can involve sharing lots of sensitive information with the other party and it is important to know who has accessed what information and when. A VDR that has a robust management system and retention policy can assist in preventing data breaches, and quickly revoke access of those who no longer need it.
Other features that are important include a powerful search engine that can locate details within large documents, and provide snippets of text from those documents when displaying results of a search. This allows users to quickly identify the correct file and open them. Document annotations let multiple users add notes and comments to the same document. This makes it simple to share these annotations with other users.
Another benefit is the ability to rapidly https://clickvdr.com/main-types-of-mergers-and-acquisitions/ redact a single image, paragraph, or section of a document, so that private information is not visible to anyone who doesn’t have a need to view it. VDRs can also be used to create automatic watermarks that display the user’s name, IP address and date/time of when the document was viewed or downloaded. This is particularly useful if you have to comply with regulatory requirements such as HIPAA or GDPR.