A virtual dataroom is a safe platform for sharing documents. It could also be an archive that can be used for long-term storage, and it lets users collaborate on documents in a single session. It comes with a range security features, such as password protection audit logs, control of file versions.
Companies engaging in M&A due diligence typically employ a VDR. This may involve sharing significant amounts of sensitive information with the other party and it is important to know who has accessed what data and when. A VDR with a robust management and retention system can prevent data breaches and can quickly debar access for those who are not required to have it.
Other important features include an efficient search engine that will locate information within large documents and provide snippets of text from those documents when showing results from a search. This allows users to quickly identify and select the right file to open. Another feature is a document annotation that lets several users add notes and comments to the same document, and makes it simple to share annotations with others.
A great feature is the ability to quickly erase an image or paragraph from a document to ensure that confidential information won’t be visible to anyone who does not need to view it. VDRs can also have automatic watermarks that display the user name and IP address, as well as the date and time at which a document is viewed or downloaded. This is especially useful if you need to adhere to regulatory compliance requirements such as HIPAA, GDPR or CCPA.