An online data room is a safe, user-friendly platform for sharing and working on sensitive documents. They are utilized in a wide range of projects that require high security and privacy like M&A transactions including private equity and venture capital financings including loan syndication and lending as well as due diligence and litigation support.
Deal rooms online are an excellent tool to use for M&A due-diligence when both the sell-side and buy-side need to prepare and review a large volume of documents. Having all of the documentation in one secure place lets both parties make informed decisions quickly and reduces the risk of deal failure due the discovery of sensitive data.
To safeguard sensitive data, the majority of virtual data rooms have specific document permissions that allow administrators to establish access rules for each file and folder in the repository. They can also enable redaction, fence view (which blacks out certain areas of files to ensure personally-identifiable data stays private) and prevent screenshotting. Moreover, most VDRs have security certificates that confirm their reliability, such as ISO 27001, SOC 1/2/3 GDPR, ISO 27001 and HIPAA.
Online deal rooms are recognized for their seamless integration via APIs that work with existing tools and systems. This makes them compatible with many popular applications and programs, including Microsoft Office, email and chat apps. This makes the workflow easier, improves communication and collaboration. Many deal rooms online offer 24/7 customer support via multiple channels, as well as a range of training videos to get users up and running.