Mergers and acquisitions are complicated transactions involving 2 companies. Usually mediated by an investment banking company, these highly sensitive and confidential transactions require the utmost security as information surrounding these types of deals are highly classified. This is usually addressed by a private data room where most of the discussions pertaining to the merger is usually held for security purpose.
But now that practically everything has gone digital, even documents involved in merger and acquisition deals now come in digital form, making it much harder to secure. This is where virtual data rooms come in. Virtual data rooms are online databases used to securely store important, sensitive, and confidential files. The features of using virtual data rooms make it ideal for transactions such as mergers and acquisitions.
Here are some benefits virtual data rooms provide for such transactions:
Automatic watermark feature
Some virtual data rooms allow for automatic watermarking on all documents being uploaded on to the database. While this doesn’t directly prevent unauthorized access and leakage of sensitive documents, this allows for easier tracking should any files get leaked. It’s a great deterrent that should make intruders think twice before attempting to leak any important documents in the secure database.
Easier and convenient uploading and access
Since virtual data rooms are online-based, this means it can be accessed by any of the pre-authorized individuals virtually anywhere. Support for multiple files allow for easier viewing of documents without having the need to download files and open it with a different program, maintaining the security of the database.
Features such as Email in allow those with special access to send and upload document on the fly via email. This makes sharing files more convenient, since practically everyone right now has access to mobile internet and is able to send emails through their smartphones.