A secure data room is a cloud solution specifically designed to store and sharing confidential business information with access control. The modern equivalent of a physical room where hard copies of documents are viewed during sales or buying negotiations, today’s virtual data rooms provide encryption technology and advanced security features, too.
Secure virtual data rooms are typically built on the same principles as personal file storage and sharing options such as Dropbox or Google Drive, but with more security. Documents and information are encrypted as they transfer to the cloud, as they are shared in the virtual data room, and while being stored on the server. This makes them much safer than basic storage and file sharing tools that rely on passwords or plugins to lock use to specific devices and locations.
In addition to the basic accessibility (on any device, wherever you are), a data room will typically include collaboration capabilities, e.g. chat and team messaging, which can help improve the efficiency of due diligence procedures. They usually provide an audit trail of the entire activity of users, to ensure that any breaches can be tracked and traced back to the source.
The majority of data rooms were created to support due diligence in a merger or purchase deal. Both parties have access to the data room to conduct an in-depth analysis. They are also becoming popular for other M&A tasks like restructuring, fundraising, or divestitures. Some are even used as a way www.joindataroom.com/what-is-a-secure-data-room-advantages-of-using/ to share and examine documents among teams with the added benefit of greater encryption security compared to traditional email.
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