What is a Secure Data Room?
A secure dataroom is an online collaboration platform that streamlines due diligence, reduces timeframes for M&A and deal making while offering complete security. It lets both selling and buy-side teams to manage transactions’ process from beginning to conclusion in a secure way.
What distinguishes a secure dataroom from file-sharing sites like Dropbox is the fact that it’s more targeted towards the business market and allows users to be divided into groups and permissions to be assigned at granular levels. Analytics can also provide insights into the use of your data (e.g. when, how and from where data is accessed. Some also come with more advanced options, like the ability to block the downloading and copying of documents (a big no-no) or even display documents on a www.getdataroom.com/5-tips-on-choosing-a-data-room-provider/ screen that cannot be scanned. Many utilize industry-leading encryption to scramble sensitive data and use multi-factor authentication to ensure that the person trying to log in is actually the one requesting access.
The most secure data rooms permit document download for offline viewing in PDF form. If you allow users to print to physical printers, or save the files to file driver to use for other purposes, they will lose the security applied to the original information stored in the virtual data rooms.
If you are able to download the files from a data room or other system and then view them without having access to the Internet that defeats the purpose of using the data room to store sensitive documents for M&A due-diligence and litigation compliance and other documents that are sensitive. The documents must be kept on devices and not transmitted to servers. This is why we suggest using a DRM solution that locks documents to devices instead of to servers which makes it impossible to extract them from devices or share them with others.