Data Room Features For M&A and IPOs

While services like Dropbox or Google Drive are fine for everyday file sharing but when it comes to sensitive information that needs to be shared in an M&A process or IPO and IPO, data rooms have much more advanced features. As opposed to free file storage services which are not specifically set up to share files in a secure environment and can offer advanced access control, auditing capabilities and watermarking that ensures only authorized users can access and download the necessary files.

A virtual data room allows both parties to carry out due diligence by establishing a workflow for each document. This makes sure that confidential business information, such as financial performance, patents or product developments are only viewed by interested buyers and ensures that all conversations are kept within the platform. This prevents leaks and also reduces the possibility of sensitive information falling into the improper hands.

The activity audit logs are another important aspect of the data room. They give a complete analysis of who has accessed a document and when. This allows M&A teams to track interest levels and decide whether to pursue negotiations or move to the next stage. In addition, data room reports help to keep teams organized by providing a quick overview of group activities (e.g. Who has logged on and who has viewed or edited what documents and when?

A virtual data room lets users search through thousands of files in a matter of minutes with a powerful search engine. This includes full-text searching, Optical Character Recognition (OCR) filters based on labels, a variety of logical operators, and much more. The ability to automatically number and index documents and folders also makes it easy to locate and organize large quantities of data.