For any company that has to deal with sensitive information the virtual data room is a must-have tool. These tools are most commonly employed in M&A transactions to guard sensitive information from being accessed by unauthorised third parties during due diligence. But it’s not just the M&A process that requires sophisticated protection of intellectual property – intellectual property, such as patents, research results, and many more are commonly involved in many projects requiring access to documents.

When selecting a data room be sure it is fit for purpose and has the features you require to meet your business needs. Choose a service that lets you test the platform and ask questions prior to paying the subscription fee, and make sure that their cost is reasonable, based on the tools offered.

Search for a virtual dataroom with a robust security set to ensure only authorized users have access. It is vital to have a robust error checking for updates two-factor authentication (2FA) system that prevents unauthorised sharing. Remote shred that erases downloaded files after an administrator has removed access is another excellent feature.

The best data room software providers can limit access to specific documents or even to a whole folder within the document. They can also impose an expiration date on documents to prevent unauthorized downloads, and allow administrators to add custom watermarks on files to will deter dubious intentions from users who are only temporary. They should also be able handle the most common formats of files, including PDFs and XLSXs.