Due diligence is a key process in any major transaction, such as mergers and acquisitions, IPOs, or fundraisers. However, companies must open up potential clients to their most important and sensitive data to complete it. At this time, data is more vulnerable than ever, and it is very difficult for administrations to track who has access to it and for what purposes. To get rid of unauthorized copying and editing due diligence data forever, use the services of virtual data rooms.
What is a due diligence data room, and why is it needed?
A due diligence data room is a secure online repository that holds all of the seller company’s confidential due diligence documents that need to be evaluated by the buyer company. The type of transaction determines the set of documents, but VDR ensures that regardless of the level of confidentiality, you can always keep records in its space. VDR can be your ideal modern transaction management solution because it meets all the basic needs of modern business: flexibility, speed, security, and simplicity. Unlike physical storage, they are more cost-effective and aim for user comfort. The group of experts of a buying company can study and analyze a seller’s data without leaving his office or any other place where there is a stable Internet. But of course, the main advantage of a data room is its high-quality protection. Thanks to several advanced features, you ensure your data is protected from internal and external leaks.
Basic VDR features for due diligence
Continuing on the topic of security, below we’ll highlight the main features of data rooms that help prevent illegal copying and editing of documents:
- Detailed access permissions
The administrators of the space have complete control over it. Thus, keeping track of who can use documents and how they can use them is easy. Then, depending on their responsibilities, you can configure individual access permissions for each user or group of users. For example, you can block and allow document visibility, copying, printing, editing, forwarding, and uploading functions. Also, users must be double authenticated before entering the VDR space to identify each of them accurately.
- Dynamic Watermark
The watermark feature reduces the likelihood of data leakage because it makes it easy to trace its source, should such an incident occur. Some watermarks are fences that make it difficult to read the information. Some are invisible but still read the information about who and when entered the document and what actions were performed in it.
- Controlling user activity
Due diligence is a process in which many people are involved, and they can even be representatives of different companies with whom you plan to close a deal. It used to be impossible to keep track of their activity, but in the VDR space www.datarooms.fr, every user action is recorded. The audit trails contain detailed information about who entered and exited the space, when what documents were accessed, and how they interacted. With this feature, you can know your partners’ level of involvement in the transaction and eliminate the risks associated with the unauthorized use of your confidential documentation.
- Expiration date
Data room administrators can regulate not only user actions but also documents. Thus, you can set an expiration date for a file, after which users will no longer be able to access it. And even if it was uploaded to a third-party device, the user can no longer open the document if its access period has expired.