A virtual data room offers an encrypted platform for sharing files. It could also be an archive that can be used for long-term storage, and it allows users to collaborate on documents simultaneously. It provides a variety of security features, such as password protection audit logs, the ability to control version of files.
Companies engaging in M&A due diligence typically employ a VDR. It is important to determine who has accessed sensitive data and when. A VDR with a solid management and retention system can protect against data breaches, and can quickly remove access to those who are no longer required to have it.
A robust search engine is an additional feature. It is able to locate data in large documents and show snippets of these documents when displaying results of the search. This allows users to quickly identify the correct file and open them. Another feature is document annotation feature that lets multiple users add comments and notes to the same document, and it makes it easy to share those annotations with others.
A useful feature is to quickly remove an image, paragraph or section from documents so that confidential information isn’t visible to anyone else who doesn’t need to see it. VDRs can also include automatic watermarks which display the user’s name and IP address, as well as the date, and time each time the document is opened or downloaded. This is particularly helpful if you need to adhere to the requirements of regulatory compliance such as HIPAA GDPR, HIPAA or CCPA.